By Boluwatife Oshadiya | October 21, 2026
Key Points
- Brent crude rose above $110 per barrel on Wednesday as doubts over US-Iran diplomacy heightened supply concerns
- US West Texas Intermediate crude also advanced, reaching $99.95 per barrel in Reuters’ latest market update
- A reported 4.9-million-barrel decline in US crude inventories added support to prices ahead of official government stock data
Main Story
Brent crude climbed above $110 per barrel on Wednesday, October 21, as renewed tensions between Iran and the United States weakened hopes of a diplomatic breakthrough and reinforced concerns about oil shipments through the Strait of Hormuz.
Brent futures rose $2.06, or 1.9%, to $110.85 a barrel by 10:48 GMT, while US West Texas Intermediate (WTI) crude gained $2.13, or 2.2%, to $99.95, Reuters reported. Earlier market data had placed December Brent futures at $110.46 and WTI at $99.31.
Prices had retreated during the previous session after reports of mediation efforts involving Iran and Pakistan raised hopes of progress. However, Iranian officials’ subsequent remarks cast doubt on the prospect of near-term negotiations. Iran’s Foreign Minister Abbas Araqchi said Tehran was prepared to defend itself, while President Masoud Pezeshkian said the United States could not expect dialogue while maintaining a blockade and issuing threats, according to Reuters.
Shipping risks have also remained a concern. Reuters cited Kpler data showing at least 18 vessel attacks over the preceding two weeks. Analysts warned that threats to tankers in the Gulf of Oman could disrupt crude loadings and ship-to-ship transfers in addition to risks around the Strait of Hormuz.
Supply-side data added to the upward pressure. US crude inventories fell by 4.9 million barrels in the week ended October 16, according to market sources citing American Petroleum Institute data. The official US Energy Information Administration inventory report was due later on Wednesday.
What’s Being Said
“Neither of the two geopolitical conflicts underpinning the market’s bullish sentiment has shown any signs of de-escalation,” PVM analysts said, referring to the Middle East and Russia-Ukraine conflicts, as quoted by Reuters.
Iranian officials’ statements have further weakened expectations of a quick diplomatic resolution, while shipping-risk data and the reported fall in US inventories have added to concerns over supply and market volatility.
What’s Next
- Watch for the US Energy Information Administration’s official inventory figures due later on Wednesday
- Track developments in US-Iran diplomacy and security incidents affecting the Strait of Hormuz and Gulf of Oman
- Monitor Brent and WTI futures for further changes as traders assess supply risks and inventory data
The Bottom Line: Oil prices are responding to both physical supply risks and the possibility that diplomatic efforts will fail to ease tensions. If shipping disruptions persist, elevated crude prices could increase energy-import costs and add to inflation pressures in oil-importing economies.
