Oil prices hold steady as U.S.-Iran Strait of Hormuz talks stall

Global oil prices remained essentially flat on August 21, 2026, as negotiations between the U.S. and Iran to reopen the Strait of Hormuz made little progress, keeping geopolitical risks elevated. Brent crude, the international benchmark, dipped 0.1% to $93.67 per barrel, while U.S. benchmark crude fell 0.1% to $86.77 per barrel. Oil was trading near $72 per barrel before the start of the war in the region.

U.S. stock markets showed mixed signals early in the session, with futures for the S&P 500 up 0.3%, the Dow Jones Industrial Average gaining 0.4%, and the Nasdaq climbing 0.6%. However, major indexes are on track for their second consecutive week of losses, with the Dow down 1.81% and the S&P 500 down 1.85% for the week before the opening bell. The Nasdaq is down 2.48%.

Treasury Secretary Scott Bessent attempted to stabilize long-term borrowing costs, which have pressured markets amid concerns over high inflation linked to the war and rising U.S. debt. The Treasury announced on August 19 that it would at least double the size of its planned purchases of longer-term government debt, and Bessent indicated the repurchase program could be expanded further. While this temporarily eased government bond yields—with the 10-year Treasury yield around 4.70% and the 30-year at about 5.25%—economists warn the impact is likely temporary.

In Asia, bond yields rose, with Japan’s 10-year government bond yield increasing to approximately 2.88% from 2.83% the previous day. Japan also reported that headline inflation reached 1.9% in July, partly driven by higher oil prices stemming from the conflict with Iran.

Bitcoin surged this week, up more than 5% early on August 21 and gaining 22% for the week, trading at $76,935. SpaceX shares rose less than 1% after nearly 319 million shares held by investors and employees became eligible for trading on August 20.

In European markets, Britain’s FTSE 100 climbed 0.1% to 10,752.29, France’s CAC 40 was nearly flat at 8,454.20, and Germany’s DAX rose 0.1% to 26,015.14. The U.S. dollar weakened to 158.70 Japanese yen from 159.05 yen, while the euro traded at $1.1702, up from $1.1678.

In Asia-Pacific equities, Japan’s Nikkei 225 fell 0.3% to 66,016.36, South Korea’s Kospi climbed 0.9% to 6,912.95, Hong Kong’s Hang Seng added 1.2% to 26,009.46, and the Shanghai Composite was nearly unchanged at 3,905.20.