Oil Rises for Third Day as Stalled US-Iran Talks Push WTI Above $85

International oil prices rose for a third straight day as prospects for a deal between the US and Iran faded.

Bloomberg reported on August 17 that West Texas Intermediate climbed above $85 a barrel after closing the previous session at its highest level since late July. Brent crude also approached $91 a barrel.

The advance was driven by concern that tensions between Washington and Tehran will persist. President Donald Trump said he has no interest in extending the agreement reached with Iran in June. The deal officially expired on August 17.

The two sides remain far apart on key issues. One major sticking point is the Strait of Hormuz, a critical chokepoint for global oil shipments. Iran is discussing ways to manage passage through the strait with Oman, while the US is not participating in those talks.

Comments from US officials also underscored the view that the dispute will not be resolved quickly. Energy Secretary Chris Wright said Washington is approaching the Iran issue from a long-term perspective. Envoy Jared Kushner indicated that Trump is in no rush to reach an agreement.

Ongoing supply concerns in the Middle East have helped drive international oil prices up about 50% this year. The impact has come as the US-Iran confrontation has dragged on for nearly six months, disrupting energy supplies from the region.

Still, Persian Gulf producers are gradually expanding their capacity to move crude without relying on the Strait of Hormuz. Saudi Arabia recently began supplying crude cargoes from outside the strait. The move suggests an effort to send oil to global markets while bypassing the chokepoint, following similar steps by the United Arab Emirates.

The US also plans to tighten economic sanctions alongside military pressure. Treasury Secretary Scott Bessent said last week that additional measures targeting Iran at an "unprecedented level" would be announced soon. The US is also maintaining a full blockade of Iranian ports.

Traders are also watching US crude inventories. Stockpiles unexpectedly rose last week to the highest level in about two months. The American Petroleum Institute is due to release its estimate later in the day, followed by official inventory data later this week.