By Boluwatife Oshadiya | August 20, 2026
Key Points
- Brent crude rises 0.9% to $92.45 per barrel as supply concerns persist around the Strait of Hormuz
- US Strategic Petroleum Reserve falls to 293.4 million barrels, its lowest level since 1982
- Tensions between the US and Iran, alongside potential shipping disruptions, continue to support oil prices
Main Story
Crude oil prices rose on Thursday as uncertainty over the Strait of Hormuz and declining US emergency crude reserves heightened concerns about global supply. Brent crude futures for October delivery climbed 0.9% to $92.45 per barrel from $91.62, while US West Texas Intermediate (WTI) crude futures for September delivery gained 1% to $85.12 from $84.30.
Market concerns are centred on the security of oil shipments through the Strait of Hormuz, a major energy transit route, and the declining buffer in the US Strategic Petroleum Reserve (SPR).
The US Energy Information Administration (EIA) reported that SPR inventories fell by 5.3 million barrels to 293.4 million barrels, the lowest level since 1982. US Department of Energy data released earlier also placed reserves at 293.4 million barrels as of August 14, down from 298.7 million barrels a week earlier.
The lower reserve position has increased concerns about Washington’s ability to respond to a major supply disruption, particularly as tensions in the Middle East remain elevated.
US President Donald Trump said Wednesday that negotiations with Iran could resume “maybe at some point,” while maintaining that the US has “complete control” of the Strait of Hormuz. Iran has rejected that position.
Iranian Parliament Speaker Mohammad Bagher Qalibaf said the waterway would remain closed until conditions outlined in a memorandum of understanding are met, including the lifting of the blockade and oil sanctions.
Regional tensions also intensified after the United Arab Emirates denied reports that it was providing financial facilities to Iran. The UAE had earlier announced a suspension of trade, commercial exchanges and financial transactions with Iran amid the escalating tensions.
The Issues
The latest price increase highlights two supply vulnerabilities facing the global oil market. The first is the potential disruption of crude shipments through the Strait of Hormuz, where continued US-Iran tensions could affect energy flows and shipping activity.
The second is the reduced capacity of the US Strategic Petroleum Reserve to cushion the market against a major supply shock. With inventories at their lowest level since 1982, the size of the available emergency buffer has become a more significant market consideration.
Together, the geopolitical risk and lower US emergency reserves are providing upward pressure on crude prices even as the market assesses the possibility of further disruptions to global energy supply.
What’s Being Said
“Maybe at some point,” US President Donald Trump said when asked about the possibility of renewed negotiations with Iran.
The EIA reported that crude oil stocks in the US Strategic Petroleum Reserve had fallen by 5.3 million barrels to 293.4 million barrels, reinforcing concerns about the available emergency supply buffer.
“The claims are false and part of desperate media campaigns,” UAE presidential diplomatic adviser Anwar Gargash said in response to reports that Abu Dhabi was providing financial facilities to Iran.
What’s Next
- Markets will continue to monitor developments between the US and Iran for indications of whether negotiations could resume
- Traders will watch the Strait of Hormuz for any changes affecting oil shipments and maritime traffic
- Further US inventory data will provide additional signals on the country’s emergency crude supply position
Bottom Line:
Oil prices are responding to a combination of geopolitical risk and a shrinking US emergency crude buffer. Continued uncertainty around the Strait of Hormuz means supply concerns are likely to remain an important driver of crude prices in the near term.
