US -Israel-Iran War Latest Live News: Crude oil prices are extending their climb as the standoff between the United States and Iran keeps the market on edge. Brent crude settled above $91 a barrel on Tuesday, August 18, while WTI moved above $85 in early Asian trading on Wednesday, marking a fourth straight session of gains.
The latest rally comes as hopes for a near-term US-Iran agreement have weakened, while uncertainty around shipping through the Strait of Hormuz continues to raise concerns about energy supplies. Trump has said the waterway is open, but Iran maintains that the strait remains restricted.
Crude Oil Price Today: Brent and WTI Extend Gains
Brent crude closed at around $91.02 per barrel on Tuesday, gaining about 0.17%. WTI, the US benchmark, settled near $84.94, up around 0.52%, with prices later moving above $85 in Asian trading.
Brent has now posted gains for several consecutive sessions, with the benchmark rising more than 4.5% over the previous three sessions before Tuesday’s close.
The market has increasingly priced in a higher geopolitical risk premium as traders assess the possibility of prolonged disruption around the Gulf.
US -Israel-Iran War Latest Live News: US-Iran Deadlock Keeps Oil Traders on Alert
The latest oil rally follows President Donald Trump’s statement that there are “no talks or conversations going on, or scheduled, with the Islamic Republic of Iran.”
Trump also maintained that the Strait of Hormuz is open and operating and said the waterway had been cleared of mines.
However, Iran has rejected the US position and linked the reopening of the strategic shipping route to demands involving the US blockade, sanctions and military pressure. Reuters reported that vessel traffic through the strait remains extremely limited despite Trump’s assertion that it is open.
That disagreement has become one of the biggest factors driving uncertainty in the oil market.
US -Israel-Iran War Latest Live News: Trump Claims Strait of Hormuz Is Open
Trump’s comments came after he shared a map portraying the Strait of Hormuz as “NEW U.S. Territory”, intensifying the dispute over the strategically important waterway.
The strait is one of the world’s most important energy routes, making any prolonged disruption a major concern for oil traders and importing countries.
Although alternative shipping and supply arrangements can reduce some of the impact, they cannot completely replace normal traffic through Hormuz. Market analysts have warned that continued restrictions could keep oil prices elevated.
US -Israel-Iran War Latest Live News: UAE Suspends Trade With Iran After Missile Claims
Regional tensions also increased after the United Arab Emirates said its air defence systems detected two ballistic missiles launched from Iran toward the country.
The UAE said one missile fell outside its territorial waters while the second fell within its waters. The incident prompted heightened security concerns across the region.
Iran has rejected the accusation. Foreign Ministry spokesperson Esmaeil Baghaei described the claim as “baseless”, arguing that such accusations could damage regional efforts to reduce tensions.
The competing claims have added another layer of uncertainty for investors already watching developments around the Gulf.
US -Israel-Iran War Latest Live News: Iran Denies Missile Attack on UAE
Tehran has strongly rejected the UAE’s version of events and said it did not launch missiles at the Gulf nation.
The denial means markets are now dealing with conflicting accounts of a potentially significant military incident. Any further escalation involving Iran and Gulf states could increase concerns about the security of energy infrastructure and shipping routes.
For oil traders, the biggest question is whether the latest tensions remain contained or develop into a wider disruption affecting crude supplies.
US -Israel-Iran War Latest Live News: US Oil Inventories Become Another Focus
Alongside geopolitical developments, traders are also watching US crude inventories.
Industry data from the American Petroleum Institute indicated that US oil stockpiles fell, raising concerns about tighter domestic supply. The official US government inventory figures are due later and could trigger another move in crude prices depending on the size of the reported draw.
Lower inventories generally provide additional support to oil prices because they suggest that available supplies are tightening.
US -Israel-Iran War Latest Live News: Diesel Margins Surge Above $100
Another major signal in the energy market is the sharp increase in the US diesel refining margin.
The margin for turning crude into diesel has climbed above $100 a barrel, reaching a record level, according to the information provided. The jump highlights growing pressure in refined fuel markets even as crude itself trades around the $85-$91 range.
Strong refining margins can encourage refiners to process more crude, potentially supporting demand for crude oil.
US -Israel-Iran War Latest Live News: Why Are Oil Prices Rising Today?
Several factors are combining to push crude prices higher:
- US-Iran negotiations have stalled, reducing hopes of a quick diplomatic resolution.
- Strait of Hormuz uncertainty continues to create concerns about global oil shipments.
- Regional military tensions are increasing, including the UAE’s missile allegations against Iran.
- Iran has denied the missile claims, leaving uncertainty over the latest regional escalation.
- US crude inventories have reportedly declined, pointing to tighter supplies.
- US diesel refining margins have surged above $100, signalling strong demand and supply pressure in refined products.
Recent market coverage confirms that the fading prospects of a US-Iran agreement and uncertainty surrounding Hormuz have been major drivers behind the latest oil rally.
US -Israel-Iran War Latest Live News: What Happens to Oil Prices Next?
The next major moves in crude oil are likely to depend on developments involving Iran, the United States and the Strait of Hormuz.
If Washington and Tehran fail to restart negotiations and shipping disruptions continue, Brent could face further upward pressure. Analysts have also warned that an escalation affecting the wider Gulf could push the market significantly higher.
On the other hand, a diplomatic breakthrough or a clear improvement in shipping conditions could reduce the geopolitical premium currently supporting prices.
For now, traders remain focused on whether the US-Iran standoff deepens and whether the latest regional incidents affect actual oil production or transportation.
