Brent and WTI Climb as Middle East Peace Prospects Weaken

News 10:08 AM - 2026-08-12

Oil prices.

Oil prices rose on Wednesday, 12 August 2026, extending gains for a fifth consecutive session as hopes of a peace agreement in the Middle East continued to diminish.

By 5:45 GMT, Brent crude futures for October 2026 delivery had climbed 0.58% to $89.43 a barrel.

West Texas Intermediate (WTI) crude futures for September 2026 delivery also advanced, rising 0.64% to $83.73 a barrel, according to real-time data from a Washington-based energy platform.

During the previous trading session, Brent and WTI gained 1.36% and 1.3% respectively, as optimism over a potential agreement between the United States and Iran to end their trade dispute and reopen the Strait of Hormuz faded. Sentiment weakened further after US President Donald Trump demanded compensation for damage allegedly suffered by the United States.

Concerns over potential supply disruptions in the Middle East intensified amid uncertainty surrounding a US-Iran peace agreement and continued attacks on commercial shipping, despite data showing an increase in US crude oil inventories.

Meanwhile, the US Energy Information Administration (EIA) raised its oil price forecasts for both 2026 and 2027 by around 6%, citing persistent concerns over global supply.

The EIA now expects Brent crude to average $86.81 a barrel in 2026, up from its July forecast of $81.91.

It also revised its forecast for WTI crude upwards to an average of $80.88 a barrel, compared with its previous estimate of $76.26.

For 2027, the EIA increased its Brent crude price forecast by approximately 7.6% to $69.39 a barrel, while WTI is expected to average $65.39 a barrel. *(Energy Magazine)*

Shipping data showed that traffic through the Strait of Hormuz fell to just six vessels on Monday, compared with an average of around 11 vessels per day over the previous 10 days.

Before the conflict, daily vessel traffic through the strategic waterway typically ranged between 125 and 140 ships.

Looking further ahead, the EIA projects that disruptions to Middle Eastern crude oil supplies will continue at around 600,000 barrels per day through to the end of 2027.


PUKMEDIA