Oil prices edge higher as Middle East supply risks intensify after maritime attacks

Oil prices rose on August 12, 2026, as worries over a broken U.S.-Iran peace agreement and recent attacks on ships in the Middle East heightened fears of supply interruptions, according to Reuters. Brent crude futures increased by 72 cents, or 0.81%, to $89.63 per barrel, while U.S. West Texas Intermediate (WTI) crude climbed by 71 cents, or 0.85%, to $83.91 per barrel.

The United States and Iran-aligned Houthi rebels claimed separate attacks on vessels in the Strait of Hormuz and the Bab el-Mandeb Strait. Only six ships traversed the Strait of Hormuz on August 10, down from the 10-day average of 11 vessels per day before the conflict. The critical waterway typically saw 125 to 140 vessels daily prior to the war.

Iran's Supreme National Security Council Secretary Mohsen Rezaei warned that the Strait of Hormuz shipping lane would remain closed until the United States fulfills Tehran's demands, namely the release of frozen Iranian assets and an end to regional hostilities. On July 22, 2026, U.S. President Donald Trump threatened Iran that the U.S. would destroy an Iranian bridge or power plant for every ship attacked in the Strait of Hormuz.

U.S. forces conducted 12 consecutive nights of military strikes against Iran on July 23. Oil prices surged to their highest level in six weeks on July 23, 2026, amid escalating tensions in the Red Sea following additional U.S. military strikes on Iran. Oil prices adjusted on July 28 following discussions between the U.S. and Iran.

Prices fell on July 30, despite renewed Middle East escalations. A single Trump statement on August 3 caused oil prices to fluctuate. Oil prices jumped on August 10, driven by uncertainty about the Strait of Hormuz's reopening.