Oil Rises for Fourth Straight Session as US-Iran Talks Stall; WTI Tops $85

International oil prices rose for a fourth straight trading day as the war between the US and Iran approached the six-month mark with no sign of progress in negotiations.

WTI crude climbed above $85 a barrel on August 18, Bloomberg reported. The US benchmark had already gained 4.5% over the previous three sessions. Brent crude also traded above $91 a barrel.

Hopes for a near-term end to the conflict weakened after President Donald Trump said the US is not currently holding talks with Iran. The two countries have been in conflict for about six months since war broke out in the Middle East in late February.

Uncertainty surrounding the Strait of Hormuz, a key chokepoint for global oil shipments, has also persisted. The US and Iran have yet to narrow differences over how the strait should be managed, and vessel traffic through the waterway, which connects Persian Gulf producers with global markets, remains limited.

Signs of declining US crude inventories also supported the advance in oil prices. Data from the American Petroleum Institute showed total US crude stockpiles edged lower. Inventories at Cushing, Oklahoma, where major oil storage facilities are located, also fell. Middle distillate inventories, including diesel, were also estimated to have declined. The US government's official oil inventory data is due later on August 18.

International oil prices have climbed sharply since the war began in the Middle East in late February. Attacks on refining facilities during the Russia-Ukraine war have also increased pressure on global energy supplies.

More recently, petroleum products have outpaced crude in the rally. Diesel and other fuel prices have risen quickly, raising the risk of broader energy-driven inflation pressure.