Oil prices rise after 2.7% gain the previous day

Global oil prices edged higher on Aug. 18, 2026, following a 2.7% surge the day before, as geopolitical tensions in the Middle East kept energy markets on edge. Brent crude, the international benchmark, climbed 0.1% to $90.94 per barrel in early trading, while U.S. benchmark crude rose 0.6% to $84.99 per barrel. The gains came as the 60-day deadline for a U.S.-Iran agreement to end the war and resolve nuclear disputes approached, with negotiations stalled and no resolution in sight. An interim deal reached in June collapsed, leaving Washington and Tehran further apart than before. Last month, Brent crude fluctuated wildly between $72 and $102 per barrel as hopes for a deal waxed and waned over the prospect of reopening the Strait of Hormuz to oil tankers. Rising oil prices remain a key driver of stubbornly high inflation worldwide. Global stock markets reacted cautiously, with European indices slipping as oil prices climbed. France’s CAC 40 fell 0.5% to 8,533.66, Germany’s DAX dropped 0.5% to 26,198.88, and the U.K.’s FTSE 100 inched down less than 0.1% to 10,710.12. In the U.S., futures for the S&P 500 slid 0.5%, while Dow Jones Industrial Average futures dipped 0.1%. Asian markets were mixed: Japan’s Nikkei 225 plummeted 2.5% to 67,460.73, South Korea’s Kospi fell 1.6% to 6,869.83, and Australia’s S&P/ASX 200 was nearly flat, down less than 0.1% to 9,070.00. Hong Kong’s Hang Seng rose nearly 0.1% to 25,471.15, and the Shanghai Composite added 0.2% to 3,990.30. Analysts noted that strong corporate earnings, particularly in AI-related sectors, helped offset some concerns over oil supply disruptions. Japan, heavily dependent on oil imports, remains particularly vulnerable to price swings. The U.S. dollar strengthened to 159.68 yen from 159.46 yen, while the euro traded at $1.1576, down from $1.1583.