Brent Crude Nears $93 as Hormuz Standoff Drags On — How to Trade Oil Right Now

Why Oil Prices Are Rising

Brent crude, the international oil benchmark, rose toward $92 a barrel on Wednesday 19 August 2026 and continued climbing toward $93 into Thursday 20 August, extending a run of gains, according to Trading Economics data. The rise has been driven by persistent uncertainty over whether the US and Iran will reach an agreement to reopen the Strait of Hormuz, a critical waterway for global oil shipments.

What's Happening at the Strait of Hormuz

The Strait of Hormuz sits between Iran and Oman and is one of the world's most important oil transit chokepoints. According to the US Energy Information Administration (EIA), crude oil and petroleum liquids transported through the strait fell to an average of around 4.9 million barrels per day in the second quarter of 2026, down sharply from roughly 21.6 million barrels per day before the conflict began, as shipping has been disrupted by the standoff.

Al Jazeera reported that the EIA does not expect Middle East oil production to return to near pre-conflict levels until early 2027, citing persistent disruption to normal shipping flows through the strait as the key constraint.

Brent vs WTI: What Moved Today

Brent crude and WTI (West Texas Intermediate) are the two most widely referenced oil benchmarks. Brent, sourced from the North Sea, is the reference price for roughly two-thirds of the world's internationally traded crude, while WTI is the main US benchmark. Both benchmarks have moved higher together over the past several sessions as the Hormuz standoff has kept supply-side concerns elevated across global commodities markets.

How to Trade Oil as a Retail Trader

There's no single way to gain exposure to oil price moves, and none of the following is a recommendation to trade any specific instrument. UK retail traders most commonly use two routes: CFDs and futures.

CFDs vs Futures on Oil

A CFD (Contract for Difference) is an agreement to exchange the difference in an asset's price between when a position is opened and when it's closed, without owning the underlying commodity. CFDs are typically traded on margin, meaning a trader puts up only a fraction of the full position size — which magnifies both potential gains and potential losses.

Oil futures trading involves a standardised contract to buy or sell oil at a set price on a set future date. Futures are also typically traded with leverage and are exchange-traded, with fixed contract sizes and expiry dates — a structural difference from the more flexible position sizes generally available with CFDs.

Losses can exceed your initial deposit when trading with leverage.

Managing Risk in a Volatile Oil Market

Oil prices have swung significantly over the past several months as the Middle East conflict has evolved, and further volatility is possible in either direction. Many traders use risk-management tools such as stop-loss orders, which are designed to automatically close a position at a pre-set price — though in fast-moving markets, execution can occur at a worse price than intended (known as slippage), so a stop-loss does not guarantee a maximum loss.

IG's risk management tools include stop-loss orders, but no tool removes the underlying risk of trading leveraged products.

FAQ

Past performance is not a reliable indicator of future results.