Oil Extends Five-Day Rally as Trump Intensifies Economic Pressure on Iran
Oil prices advanced again on Thursday (Aug. 20), extending gains for a fifth consecutive session after US President Donald Trump announced a new package of measures aimed at increasing economic pressure on Iran. Based on the latest available prices, Brent crude was trading around $91.87 per barrel, while WTI for October delivery hovered near $84.53 per barrel. Brent had previously settled at $91.62, its highest level since July 24.
Trump described the measures as a form of “economic warfare and isolation” against Iran. Washington warned that countries or institutions helping Iran maintain economic activity could face significant consequences. The US also called for tighter restrictions on activities such as cash transfers, commercial networks, ship registrations, and other channels considered capable of helping Tehran retain access to the international financial system.
The move has brought renewed attention to the Strait of Hormuz, one of the world’s most important energy shipping routes. The conflict between Washington and Tehran has driven oil prices sharply higher this year as markets priced in the risk of supply disruptions from the Persian Gulf. Conditions in Hormuz have yet to fully normalize, while the volume of vessels moving through the waterway remains a key focus for traders.
Stronger US economic pressure on Iran could also affect major buyers of Iranian crude, particularly China. A significant share of Iranian oil has continued to move through discounted trade channels created by earlier US sanctions. Washington’s strategy has recently shifted from military pressure toward broader economic measures, with the apparent objective of pushing Tehran back to negotiations while weakening Iran’s influence over shipping through Hormuz.
However, the oil market has become less sensitive to geopolitical headlines than it was earlier in the conflict. Traders are increasingly focused on actual physical supply conditions rather than political statements alone. Recent US data also showed crude inventories rising by 4.4 million barrels to 428.8 million barrels, providing some counterweight to concerns about supply disruptions in the Middle East.
Geopolitical risk nevertheless remains a major source of support for oil prices. The United Arab Emirates previously cut economic and financial ties with Iran after accusing Tehran of launching missiles at its territory. With uncertainty surrounding Hormuz still elevated and Washington intensifying economic pressure on Iran, Brent is likely to remain highly sensitive to developments in shipping flows, Iranian oil exports, and broader Middle East tensions.(mrv)
Source : Newsmaker.id
