Oil Prices Rise for Four Consecutive Days
Global oil prices continued to strengthen in trading on Wednesday (19/8/2026), driven by concerns over global supply after uncertainty surrounding conditions in the Strait of Hormuz increased again.
According to Refinitiv data on Wednesday (19/8/2026) at 09.20 Western Indonesia Time, the price of Brent crude stood at US$91.90 per barrel, up 0.97% compared with the previous close of US$91.02 per barrel. Meanwhile, West Texas Intermediate (WTI) crude rose 1.08% to US$85.86 per barrel from US$84.94 per barrel.
The increase extended the oil price rally to four consecutive trading days. Compared with the close on 7 August, Brent has jumped around 10%, while WTI has strengthened by nearly 10%. Both contracts are now at their highest levels since 24 July.
The price gains came as market participants reassessed the outlook for oil supply from the Middle East. Hopes for a peace deal between the United States and Iran faded after President Donald Trump said there were no ongoing talks with Iran and stressed that the Strait of Hormuz remained open. The statement contradicted Iran’s claim that the strategic shipping lane had not yet returned to normal.
A temporary ceasefire is known to have ended on Monday. A senior Iranian official told Reuters that the country was taking further steps amid the diplomatic deadlock, although as of Tuesday there had been no reports of new attacks.
Risks to oil distribution have prompted a number of countries and companies to begin preparing alternative routes. The Iraqi government has approved a mechanism for exporting crude oil through several international and domestic companies and by using various export ports. The scheme will run for three months starting 1 September.
Elsewhere, two major Chinese shipping companies have halted tanker shipments through the Strait of Hormuz and Bab al-Mandeb. Oil cargoes are now being gathered outside the Gulf region as a security risk mitigation measure. The route changes could lengthen delivery times and increase global oil logistics costs.
From a fundamental perspective, oil supply in the United States is also providing support for prices. American Petroleum Institute (API) data showed crude oil and distillate inventories fell last week, while petrol stocks increased. The decline in crude oil stocks indicates tighter domestic supply.
The market is now awaiting official Energy Information Administration (EIA) data, with analysts expecting US crude oil inventories to fall again by around 600,000 barrels in the week ending 14 August.
With the combination of geopolitical risks in the Middle East, adjustments to oil distribution routes, and expectations of declining US oil stocks, the risk premium in the energy market remains intact. As long as there is no certainty regarding the normalisation of shipping activity in the Strait of Hormuz, oil price volatility is expected to remain high.