Global Oil Prices Rise as US-Iran Tensions Hit Energy Markets
Global oil prices rose on Friday, August 14, as growing tensions between the United States and Iran increased fears of further disruption to energy supplies.
Brent crude rose about 0.9% to $87.87 a barrel, while US West Texas Intermediate (WTI) gained around 0.5% to $81.69. Both benchmarks were also on track for weekly gains, with Brent up more than 5% and WTI up more than 4%.
The latest rise came after the United States threatened stronger action against Iran, including the possibility of an indefinite naval blockade. At the same time, negotiations aimed at ending the conflict have stalled, adding uncertainty to the energy market.
The Strait of Hormuz remains a major concern. The waterway normally handles a significant share of global oil and liquefied natural gas shipments. Recent attacks on vessels, including two tankers operated by the UAE’s state oil company, have further reduced shipping activity through the route.
The International Energy Agency has warned that global oil supply could fall sharply this year because of disruptions linked to the conflict. It expects supply to decline by 4.3 million barrels per day in 2026, creating a potential supply deficit if disruptions continue.
However, weaker demand could limit the rise in prices. The IEA and OPEC have both lowered their demand outlooks, while US crude inventories recently recorded a major increase.
For consumers and businesses worldwide, prolonged tensions could mean higher fuel, transport and production costs if oil supplies remain under pressure.
