# Oil prices rise as Middle East peace hopes fade Tensions over Strait of Hormuz drive volatility in oil markets. - **Source:** [Breaking News on Seeking Alpha](https://brifing.si/source/9a596115-e1cc-45e7-b5ba-070be9ea2998) - **Published:** 2026-08-14 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/c4a03961-0005-475c-84f8-47601a550a97 ## Weekly gains in oil prices Crude oil futures extended gains on Friday and throughout the week as lack of progress in Middle East peace efforts and escalating tensions between the U.S. and Iran increased market uncertainty. The struggle for control over the Strait of Hormuz, which handles about 20% of global oil trade, put upward pressure on prices. Brent crude rose 3.5% weekly to reach $85 per barrel. ## Strategic importance of Hormuz The Strait of Hormuz is one of the world's most critical chokepoints, handling approximately 21 million barrels of oil daily. Iran's control claims over the strait and increased U.S. military presence in the region threaten global energy supply security. During similar tensions in 2019, oil prices surged over 15%. Experts warn escalating tensions could negatively impact the global economy. ## Impact of U.S.-Iran tensions Tightening U.S. sanctions on Iran and Tehran's refusal to scale back its nuclear program have weakened hopes for diplomatic solutions. Iran's recent increase in oil exports to 1.5 million barrels per day had boosted supply expectations. However, recent developments have overshadowed this optimism. OPEC+ production decisions will also influence prices in coming months. ## Market analysts' views Goldman Sachs analysts note Middle East geopolitical risks are adding a $10-$15 risk premium to oil prices. JP Morgan predicts Brent could test $90 if tensions persist. Meanwhile, China's economic slowdown and U.S. inflation pressures increase demand-side uncertainties. Markets are closely watching Fed interest rate decisions. ## Military developments in region The U.S. Defense Department reported increased attacks on American bases by Iran-backed groups. The Pentagon has deployed additional destroyers and fighter jets to the Gulf. Iran's Revolutionary Guards recently reiterated their 'capability to close the Strait of Hormuz.' Similar threats during the 1980s Tanker War disrupted global oil trade. ## Impact on alternative energy Rising oil prices could accelerate renewable energy investments. The EU is increasing solar and wind investments as part of its strategy to reduce energy imports from Russia. However, experts emphasize oil remains irreplaceable short-term. Despite growing EV sales, over 90% of global transport still relies on petroleum products. ## Potential effects on Turkey Higher oil prices could negatively impact Turkey's current account deficit. Turkey imports 90% of its oil needs, with energy imports around $50 billion annually. Energy Ministry data shows each $10 oil price increase adds $4-5 billion to the deficit. Experts warn rising energy costs could increase inflationary pressures. ## Outlook for coming weeks Energy market uncertainty is expected to continue in coming weeks. OPEC+ may review production policies at its June 4 meeting. Potential U.S. releases from strategic reserves are also being discussed. Analysts note summer demand increases could push prices higher. Geopolitical risks persisting could bring $100 oil back into discussion. ## Sources covering this story - https://seekingalpha.com/news/4633570-oil-wraps-up-strong-weekly-gain-with-no-progress-toward-middle-east-peace?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._