Oil prices surge as Strait of Hormuz tensions remain unresolved

Global oil prices surged again on August 19, 2026, as the conflict over the Strait of Hormuz showed no signs of resolution, pushing Brent crude up 1% to $91.91 per barrel. U.S. benchmark crude oil also climbed 1.1% to $84.99 per barrel. The escalation comes despite Brent crude trading around $70 per barrel before the war began. The ongoing tensions have driven bond yields higher, fueling inflation concerns and pressuring the fast-growing tech sector, which thrives in low-interest environments. The yield on the 10-year U.S. Treasury edged down to 4.70% from 4.72% but remains significantly above its pre-war level of 3.97%. The 30-year Treasury yield also ticked lower but remains near its highest point since 2007. High yields have pushed the average long-term U.S. mortgage rate to its highest level in a year, further straining the housing market. In equities, AI-related stocks continued their volatile streak, with shares of Oracle slipping over 1%, Marvell Technology and Intel both falling nearly 2%, and Micron Technology dipping 1%. Target’s stock declined 1.6% despite reporting its second straight quarter of comparable sales gains under new CEO Michael Fiddelke. The Federal Reserve’s upcoming release of minutes from its most recent rate-setting meeting added to market anxiety. Meanwhile, President Donald Trump’s decision to delay U.S. tariffs on $20 billion worth of Canadian imports provided a brief respite for markets. In Europe, Germany’s DAX slipped 0.1% to 26,084.43, France’s CAC 40 rose 0.3% to 8,535.30, and Britain’s FTSE 100 fell 0.2% to 10,705.47. In Asia, Japan’s Nikkei 225 plummeted 3.2% to 65,326.42 amid rising bond yields and tech stock sell-offs. The U.S. dollar weakened to 159.13 Japanese yen from 159.61 yen, while the euro strengthened to $1.1604 from $1.1577.