Oil prices remained elevated in Asian trading on Tuesday, August 18, as traders weighed worsening U.S.-Iran tensions against the risk of further disruption to crude shipments through the Strait of Hormuz. Brent crude climbed around 0.3% to $91.09 a barrel, while WTI gained 0.4% to $84.85, keeping both benchmarks close to their highest levels in recent weeks.
The latest move followed the expiration of a 60-day U.S.-Iran memorandum without a permanent peace agreement. President Donald Trump said Washington would not extend the arrangement, while Iran warned that it could adopt a more offensive military posture if diplomacy fails. The deterioration in negotiations has increased concerns that the conflict could continue disrupting energy flows.
The Strait of Hormuz is at the center of the market’s attention. Before the conflict, roughly one-fifth of global oil and LNG supplies moved through the waterway. Recent shipping activity has fallen sharply, with Reuters reporting that only five tankers crossed on Saturday and none on Sunday, compared with 31 vessels the previous weekend.
Diplomatic efforts involving Oman and Iran have offered some hope of restoring shipping through the strait, but no definitive agreement has emerged. Trump’s threats against Oman have added another layer of uncertainty because the country has played an important role in facilitating communication between Washington and Tehran.
Technical Analysis
From a technical perspective, crude oil remains firmly supported after Brent pushed above the psychologically important $90 level. WTI is also holding above $84, while the latest price action shows buyers are still willing to defend the market near recent highs.
For Brent, $90 is the key near-term support zone. Holding above this level would keep the bullish structure intact and could open the way toward the $92–$95 area if geopolitical tensions intensify. A sustained break above $95, however, would likely require a clearer deterioration in Hormuz shipping conditions rather than geopolitical headlines alone.
For WTI, $84–$85 represents the immediate technical battleground. A move above recent highs around $85 could strengthen bullish momentum, while a failure to hold $84 would increase the probability of a pullback toward lower support levels.
The technical setup is therefore bullish but highly headline-sensitive. Traders should watch both price structure and developments around Hormuz rather than assuming that every geopolitical escalation will automatically produce another sustained oil rally. The market has previously shown that alternative supply routes, inventories and demand concerns can limit the upside.
Oil is currently trading at the intersection of technical momentum and geopolitical risk. Any credible progress toward reopening the Strait of Hormuz could trigger a sharp reversal in crude, while renewed attacks, stalled diplomacy or further restrictions on tanker traffic could push prices higher. For traders, this makes $90 Brent and $84–$85 WTI important levels to monitor, while also increasing the risk of sudden volatility, wider moves and false breakouts as new headlines hit the market.
