By Boluwatife Oshadiya| August 19, 2026
Key Points
- Iran says it will keep the Strait of Hormuz closed until the United States fulfils conditions under their June memorandum
- Brent crude rises to around $91.72 per barrel while West Texas Intermediate (WTI) trades at $84.71
- A reported 3.3-million-barrel fall in US crude inventories adds to concerns over tightening supply
Main Story
Oil prices rose on Wednesday as Iran maintained that the Strait of Hormuz will remain closed until the United States fulfils commitments under a June memorandum, heightening concerns over global crude and fuel supplies.
Brent crude futures for October delivery traded at $91.72 per barrel, up 0.8% from $91.02, while US benchmark West Texas Intermediate (WTI) crude futures for September delivery rose 0.2% to $84.71 from $84.51.
Iranian Parliament Speaker and top negotiator Mohammad Bagher Qalibaf said Tuesday that Tehran would not reopen the strategic waterway until Washington fulfils the conditions contained in the memorandum, including lifting the blockade on Iranian ports, removing oil sanctions and releasing frozen Iranian assets.
“Until the US fulfills its commitments under the memorandum of understanding … the Strait will not reopen,” Qalibaf said, according to Iran’s state news agency IRNA.
The memorandum, signed on June 17, provided for temporary arrangements covering commercial passage through the Strait and opened a 60-day period for negotiations towards a broader agreement. The deadline has since expired without a final settlement, leaving the status of the waterway disputed between Tehran and Washington.
The Strait of Hormuz remains central to the oil market because it previously carried roughly one-fifth of global oil and liquefied natural gas flows. Shipping activity has remained heavily disrupted, with many shipowners avoiding the route amid continuing security concerns.
Supply concerns were reinforced by US inventory data. The American Petroleum Institute (API) estimated that commercial crude inventories fell by 3.3 million barrels last week, against expectations for a 200,000-barrel increase.
The market is awaiting official US Energy Information Administration (EIA) inventory data, scheduled for Wednesday, for confirmation of the latest supply position.
What’s Being Said
“Until the US fulfills its commitments under the memorandum of understanding … the Strait will not reopen.” — Mohammad Bagher Qalibaf, Speaker of the Iranian Parliament and Iran’s top negotiator.
Market analysts say uncertainty surrounding the Strait is maintaining a geopolitical risk premium in crude prices, with continued disruption capable of keeping oil prices elevated.
What’s Next
- The US Energy Information Administration is due to release its weekly crude inventory data on Wednesday, providing a more authoritative reading of US stock levels.
- Markets will continue to monitor developments between Washington and Tehran, particularly any movement towards reopening the Strait of Hormuz or restarting negotiations.
- Traders will also watch shipping activity through the Strait for evidence of whether supply disruptions are easing or becoming more prolonged.
Bottom Line
The Bottom Line: Oil markets are being driven by the combination of geopolitical supply risk and tighter-than-expected US inventory signals. Until there is greater clarity on the Strait of Hormuz, crude prices are likely to remain highly sensitive to developments between Iran and the United States.
