Oil Rises for Fourth Day as US-Iran Standoff Keeps Hormuz Tensions High

Oil rose for a fourth straight day as uncertainty surrounding the Strait of Hormuz persisted amid the US-Iran standoff.

According to Bloomberg, October West Texas Intermediate crude traded above $84 a barrel on Aug. 19. Brent closed near $92 a barrel a day earlier.

Traders are closely watching crude flows through the Strait of Hormuz. President Donald Trump told reporters on Aug. 19 that “a lot of oil” is still moving through the waterway. On the possibility of resuming talks with Iran, he added that “it could happen someday.”

Visible vessel traffic through the strait remains far below normal levels. Shipping disruptions have continued because of vessel attacks and mine-laying, but Persian Gulf oil producers are still exporting crude by keeping ship locations from public view, among other measures. Axios reported that the US military has recently set up a transit corridor in the Strait of Hormuz for shipping.

Oil also found support from the United Arab Emirates' decision to cut all economic ties with Iran. The UAE announced the move on Aug. 19 after alleging that Iran fired a ballistic missile toward its territory. Because the UAE has served as a major financial and business hub for Iranian companies and funds, the measure could deepen Iran's economic isolation.

US oil data also lent some support to prices. Energy Information Administration data showed refinery runs rose to the highest level since 2019. Inventories of middle distillates such as diesel, where supply concerns have persisted, fell to the lowest level in more than a month.

Still, US crude inventories rose by 4.4 million barrels last week. That increase weighed on prices, though the drop in middle-distillate stockpiles and strong refinery activity partly offset the pressure.