Oil hits three-week high on uncertainty over Hormuz

Oil prices reached a three-week high on August 19, 2021, due to uncertainty surrounding shipping through the Strait of Hormuz and ongoing supply disruptions. Brent crude futures climbed 45 cents to $91.47, while U.S. West Texas Intermediate crude futures increased by 45 cents to $85.39. Analysts noted that the geopolitical risk premium was still embedded in the oil price due to low confidence in safe passage and persistent uncertainty.

U.S. President Donald Trump announced that no talks were taking place with Iran, contradicting Iran's claim that the Strait of Hormuz remained closed. The temporary ceasefire agreement had expired, and Iran was reported to be moving to a fully offensive military posture. The Strait of Hormuz, which carries about one-fifth of global oil and liquefied natural gas supplies, continued to face near-full disruption, causing concerns for energy markets.

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