Crude Oil Price Today, August 12, 2026: Global crude oil prices extended their rally on Wednesday as uncertainty surrounding a possible US-Iran agreement and continuing tensions in the Middle East kept traders concerned about potential supply disruptions. Brent crude moved close to the crucial $90-per-barrel level, marking its sixth consecutive session of gains.

Despite industry data indicating an increase in US crude inventories, concerns surrounding shipments through the strategically important Strait of Hormuz continued to dominate market sentiment.

Brent Crude Approaches $90 Per Barrel

Brent crude futures climbed 72 cents, or 0.81%, to $89.63 per barrel in early trade.

US West Texas Intermediate (WTI) crude also strengthened, rising 71 cents, or 0.85%, to $83.91 per barrel.

WTI has gained around 11% over the past four trading sessions, highlighting the sharp increase in volatility in the global energy market.

Both benchmarks had risen by more than $1 in the previous session and reached their highest closing levels since July 31.

Oil prices had also surged by nearly 5% on Monday as optimism over a possible diplomatic breakthrough between the United States and Iran weakened.

Why Are Crude Oil Prices Rising?

The biggest factor driving oil prices is uncertainty surrounding the Middle East and the flow of energy supplies through the region.

Markets are closely tracking negotiations related to the Strait of Hormuz, one of the world's most strategically important oil-shipping routes.

Reports cited Pakistan's Defence Minister as saying that the United States and Iran were moving closer to some form of agreement concerning the waterway.

Separately, Qatar's Foreign Ministry indicated that discussions involving Iran and Oman had reached an important stage.

However, the lack of a final agreement means uncertainty remains high.

Strait of Hormuz Remains the Key Focus

Developments surrounding the Strait of Hormuz have become a major trigger for crude oil futures.

Prices have been fluctuating sharply depending on whether investors believe an agreement to restore normal shipping activity is getting closer or negotiations are facing another setback.

Shipping activity through the route has reportedly fallen substantially. Some crude oil continues to move out of the Persian Gulf, while reports suggest that several tankers have been operating with their transponders switched off.

The Strait of Hormuz is crucial to the international oil market because a substantial amount of global petroleum supply passes through the narrow waterway.

Any prolonged disruption can tighten international supplies and push crude prices higher.

Fresh Shipping Incidents Add to Supply Concerns

Regional tensions have also increased following reports of attacks involving commercial vessels.

According to the source report, a US Navy helicopter fired two Hellfire missiles at a Panama-flagged cargo vessel that was allegedly attempting to breach restrictions involving Iranian ports.

Such incidents are keeping traders cautious because further escalation could affect shipping routes, insurance costs and energy transportation across the region.

Around 9 Million Barrels Moving Through Strait Daily

The report cited US Energy Secretary Chris Wright as saying that approximately 9 million barrels of oil per day were moving through the Strait of Hormuz with assistance from the US military.

Any significant reduction in these flows could have major consequences for global crude supplies.

That possibility has helped create a geopolitical risk premium in oil prices even as other market indicators, including US inventories, point towards potentially better supply availability.

Crude Oil Has Jumped More Than 40% This Year

Oil prices have experienced a substantial rally in 2026.

According to figures cited in the report, crude oil prices have increased by more than 40% this year, while some refined petroleum products have registered even sharper gains.

The Russia-Ukraine conflict has also continued to influence international energy markets, particularly diesel and refined-product supplies.

These disruptions, combined with instability in the Middle East, have made the global oil market increasingly sensitive to geopolitical developments.

US Sees Supply Disruption Continuing Into 2027

The US Energy Information Administration's Short-Term Energy Outlook has also highlighted potential longer-term risks.

According to the report, the ongoing confrontation involving Iran could result in an average supply disruption of around 600,000 barrels per day through the end of 2027.

If disruptions persist for an extended period, the impact could be felt not only in crude oil prices but also in petrol, diesel, aviation fuel and other petroleum products globally.

Diplomatic Efforts Continue

Diplomatic efforts to reduce tensions are continuing.

Pakistan's Defence Minister Khawaja Asif reportedly said on Tuesday that conditions appeared to be moving towards peace, although he did not provide detailed information about the negotiations.

Pakistan has been involved in diplomatic efforts aimed at helping reduce tensions.

For oil traders, however, statements suggesting progress are unlikely to remove the geopolitical premium completely until there is a concrete agreement and shipping activity through the region returns closer to normal.

What Could Happen to Crude Oil Prices Next?

The $90-per-barrel level for Brent crude is now an important psychological marker for the market. A sustained move above this level could increase concerns about inflation and fuel costs worldwide.

On the other hand, a diplomatic breakthrough between the US and Iran or a significant improvement in shipping through the Strait of Hormuz could ease supply fears and put downward pressure on prices.

Traders will therefore be watching developments around the Strait, US-Iran negotiations, shipping movements and global crude inventories particularly closely.

Could Rising Crude Prices Affect Fuel Prices in India?

India imports a large portion of its crude oil requirements, making international petroleum prices an important factor for the domestic economy.

A prolonged increase in global crude prices can raise India's import bill and potentially put pressure on the rupee, inflation and fuel-marketing costs.

However, an increase in international crude prices does not automatically mean an immediate increase in petrol or diesel prices in India. Domestic retail rates also depend on taxes, refining and distribution costs, currency movements and pricing decisions by oil marketing companies.

For now, the biggest question for global energy markets is whether diplomatic efforts can reduce Middle East tensions before Brent decisively crosses the $90-per-barrel mark.

Disclaimer: Commodity and crude oil prices are volatile and can change rapidly. The information above is for informational purposes only and should not be treated as investment advice.