Noida, Aug 17 (APAC Media): Oil prices held in a narrow range on Monday after posting strong gains last week, with ongoing uncertainty over U.S.-Iran relations and the security of the Strait of Hormuz continuing to support crude prices.
Brent crude futures rose 0.25% to $88.32 a barrel, while U.S. West Texas Intermediate (WTI) crude futures declined 0.55% to $81 a barrel as of 11:35 a.m. IST.
Brent crude surged more than 4% last week as hostilities between the U.S. and Iran intensified, with Tehran expanding attacks on energy infrastructure across West Asia.
Traffic through the Strait of Hormuz also slowed further after Iranian attacks on tankers in the region, while the U.S. continued to maintain its naval blockade of Iran.
Over the weekend, Iranian Foreign Minister Abbas Araqchi reiterated Tehran’s position that it was not engaged in direct negotiations with the United States, while Washington threatened to impose additional economic measures on Iran.
The conflict in West Asia also expanded into the Red Sea, with Iran-backed Houthi forces in Yemen continuing attacks on vessels in the Bab al-Mandab Strait, raising concerns over further disruptions to oil flows from the region.
Supply-side risks continued to outweigh expectations of weaker global oil demand. Major industry bodies, including the Organization of the Petroleum Exporting Countries (OPEC) and the International Energy Agency (IEA), lowered their forecasts for global oil demand growth in 2026 last week.
Meanwhile, Israel launched fresh strikes on Lebanon over the weekend, killing 11 people, including a senior Hezbollah commander. US President Donald Trump was also preparing additional economic sanctions aimed at increasing pressure on Tehran to end the conflict, amid growing pressure on his administration to bring the military campaign to a close.
Robert Kelly, a professor of international relations at South Korea’s Pusan National University, said US President Donald Trump’s decision to scale back planned military drills with South Korea may be linked to his failure to secure a quick end to the war with Iran.
“Trump started that war. He expected it to go pretty quickly,” Kelly told Al Jazeera, saying the US president appeared to have anticipated a short conflict similar to the military operation in Venezuela in January.
Instead, the conflict has escalated into a prolonged exchange of attacks, which Kelly described as increasingly resembling what Americans call a “forever war”.
Kelly said Trump appeared to be “stuck” and looking for someone to blame as the conflict drags on.
“US allies have been convenient for that purpose. Trump has attacked NATO in the past for this purpose,” he said, adding that South Korea did not participate in the war and was not consulted.
Kelly said Trump may be seeking to deflect attention from the difficulties facing the United States in the Gulf.
“I think Trump is basically sort of looking to shield or sort of cover up this stumble, this problem that he has in the Gulf,” Kelly said. “He doesn’t really know how to get out of it.”
The interim ceasefire agreement between the US and Iran is due to expire later on Monday, while negotiations aimed at ending the conflict and securing the reopening of the Strait of Hormuz remain deadlocked.
Middle Eastern oil producers have reportedly continued moving millions of barrels of crude through the strategic waterway, helping to cap further gains in oil prices. Iran and Oman also appeared to be moving closer to an understanding on managing traffic through the Strait of Hormuz, although the US has not participated in those discussions.
–ENDS–
Disclaimer: This article is for informational purposes only and is based on publicly available information. APAC Media is not responsible for investment decisions or losses. Please conduct your own research or consult a financial adviser before investing.
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