- Oil prices rose as concerns grew over prolonged disruption to Iranian crude supplies and Strait of Hormuz shipments.
- Brent climbed 1.8% to $88.64, while WTI rose 2% to $82.89.
Fresh concerns over crude supply pushed oil prices higher on Friday, August 28, after the United States indicated that its blockade of Iranian ports could remain in place for an extended period. The development has put the Strait of Hormuz back at the center of market attention. Any prolonged disruption around the waterway could affect global energy shipments and keep prices volatile.
Brent crude gained 1.8 per cent to $88.64 a barrel. West Texas Intermediate (WTI) rose 2 per cent to $82.89. The gains came after both benchmarks lost about 2 per cent during Thursday’s trading session. Even so, the two contracts remain on track for weekly increases of about 4 per cent.
US officials have signaled tougher economic measures against Iran as the conflict continues. Treasury Secretary Scott Bessent said Washington was considering steps that would increase pressure on the Iranian economy.
Defense Secretary Pete Hegseth separately indicated that US forces could keep the blockade in place indefinitely. Markets are also watching developments around shipping in the Strait. The United Arab Emirates reported that Iran had attacked two vessels belonging to Abu Dhabi National Oil Company while they were travelling through the waterway.
The incident has added to concerns over the safety of energy shipments. Hormuz remains a crucial route for international oil and gas trade.
However, supply fears are being balanced by weaker demand expectations. The International Energy Agency recently lowered its outlook for global oil demand growth amid the continuing disruption. Energy Secretary Chris Wright also offered some relief to supply concerns on Thursday, August 27, 2026. He said oil exports through the Strait were running at levels above some independent estimates.
That assessment helped push prices lower during the previous session.
The market is therefore facing competing pressures. Continued disruption around Hormuz could tighten supplies, while weaker global demand could limit further price increases.
For now, traders remain focused on the military situation and the flow of vessels through the Strait. Any further escalation could quickly add another layer of pressure to an already volatile global energy market.