Oil Price Today, August 12, 2026: Crude Oil Prices Rise to $89.7 Per Barrel as US-Iran Deal Hopes Fade, Strait of Hormuz Disruption Fuels Supply Concerns

Mumbai, August 12: Crude oil prices climbed on Wednesday as fading hopes of a U.S.-Iran peace agreement and fresh attacks on shipping vessels heightened concerns over prolonged disruptions to Middle East supplies. The rise came despite data pointing to a sharp increase in U.S. crude inventories, with traders focusing on the possibility that disruptions to key shipping routes could keep global supplies constrained for an extended period. 

Brent, WTI Extend Gains 

Brent crude futures rose 0.9% to $89.7 a barrel while U.S. West Texas Intermediate crude gained 1% to $84. Both benchmarks had settled more than $1 higher on Tuesday, marking their highest closing levels since July 31. Oil prices had also jumped around 5% on Monday as optimism over a potential peace deal between Washington and Tehran began to fade. 

Also Read: How to invest in crude oil 

The latest gains underline how quickly geopolitical developments have become the dominant driver for the oil market. Investors had initially expected a diplomatic breakthrough between the United States and Iran to help ease supply concerns, but those expectations have weakened, keeping a risk premium embedded in crude prices. 

Both benchmarks gained as hopes of an Iran peace deal faded. Source: oilprice.com 

The Strait of Hormuz is particularly important for global energy markets because a significant share of internationally traded oil and petroleum products passes through the waterway. Any prolonged reduction in traffic could therefore tighten supplies and increase price volatility. 

Longer-Term Supply Risks Persist 

The U.S. Energy Information Administration expects disruptions to Middle East crude supplies of around 600,000 barrels per day to continue through the end of 2027, suggesting that geopolitical risks could remain an important factor in the oil market well beyond the immediate conflict. 

For India, the rise in crude prices is particularly significant because the country depends heavily on imports to meet its oil requirements. Sustained higher prices could increase the country’s import bill, put pressure on the rupee and widen the trade deficit. Higher energy costs could also feed into inflation and raise input expenses for businesses. 

Indian Markets In Focus 

The renewed rise in crude prices is likely to remain a key trigger for Indian equities. Oil marketing companies, upstream producers, aviation firms, paints, chemicals and other energy-intensive sectors could see increased investor attention as markets assess the impact of higher crude prices on earnings. 

While upstream oil producers can benefit from stronger crude prices, companies with high fuel and transportation costs could face margin pressure if elevated prices persist. 

With Brent crude moving closer to the $90-a-barrel mark, investors are likely to track developments around the Strait of Hormuz and U.S.-Iran negotiations closely. Any indication of a diplomatic breakthrough could ease the risk premium in crude, while further attacks or a prolonged closure of key shipping routes could push prices higher. 

For Indian markets, therefore, crude oil remains one of the most important external variables to watch, alongside the rupee and global risk sentiment. 

Source 

• oilprice.com