Crude Oil Prices Steady Today as Markets Assess US-Iran War Outlook | August 20, 2026

On Thursday, August 20, 2026, Oil prices were traded almost steady in early trade. 

As of by 0037 GMT, Brent crude futures of October Contract delivery had gained 25 cents, or 0.3%, to trade at US$91.87 a barrel 

While the US West Texas Intermediate crude futures for the September contract fell by 2 cents to trade at US$85.81, while the more active October contract gained 14 cents, or 0.2%, to trade at US$84.53. 

Middle East Tensions Keep Oil Prices Elevated 

Notably, this extends the winning streak for both Brent and WTI to four consecutive days. On Wednesday, both contracts closed at levels we haven't seen since July 24, 2026. 

Oil prices have remained supported by sporadic attacks in the Middle East, although the market has lacked a fresh push higher without a major escalation. Uncertainty over peace talks and tensions involving Iran, the UAE and Oman continue to keep traders cautious. 

The UAE's decision to suspend financial and economic transactions with Iran until further notice has also drawn attention to relations between the Gulf oil producer and Tehran. 

Strait of Hormuz Disruption Raises Supply Concerns 

Uncertainty over the Strait of Hormuz remains a major concern for the oil market. US President Donald Trump said on Tuesday that the waterway was open and that no talks were taking place with Iran. Iran, however, said the strait remained shut. 

Shipping activity through the key waterway slowed on Wednesday as several shipowners avoided the route because there was no clear indication that the blockade imposed during the Iran war would be lifted. 

Read More: India's Tanker Exports Rise More Than 6 Times to $1.36 Billion in Q1 FY27! 

US Inventory Data Limits Oil Price Gains 

Fresh US inventory data also kept a lid on gains. The Energy Information Administration reported that crude inventories increased by 4.4 million barrels in the week ended August 14, against market expectations for a 600,000-barrel decline. 

Gasoline inventories also increased, while distillate stockpiles fell. The unexpected rise in crude stocks has added another factor for traders to consider as they assess demand in the world's largest oil market. 

Conclusion 

Oil prices remain sensitive to developments around the US-Iran conflict and the Strait of Hormuz. With shipping disruptions continuing and US crude inventories rising, traders are likely to watch geopolitical developments closely for the next direction in prices. 

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