Brent Crude Holds Above $106 as Strait of Hormuz Crisis Keeps Oil Markets on Edge

LONDON/NEW YORK: Oil prices are heading for a weekly gain as traders keep their eyes on supply from the Middle East and the Strait of Hormuz.

Where Prices Stand

Brent crude futures rose 36 cents, or 0.34%, to $106.28 a barrel, Reuters reported on October 16. U.S. West Texas Intermediate (WTI) crude fell 19 cents, or 0.19%, to $97.78. Investors are also weighing possible U.S. sanctions on Iran's so-called "shadow fleet" of tankers.

Trading Economics said U.S. crude slipped to $97.44 a barrel on October 16, down 0.54% from the day before, and estimates it could trade near $109.89 in 12 months.

Why Hormuz Matters

The Strait of Hormuz is one of the most important shipping routes for the world's oil. During the 2026 Strait of Hormuz crisis, oil prices rose faster than during any other conflict in recent history, and Brent passed $100 a barrel, according to Wikipedia's summary of the crisis. A U.S. Congressional Research Service report found that between February and May 2026, European and Asian natural gas prices rose 44% and 66%, while U.S. prices fell 6%.

War Risk Stays High

The market is also reacting to the U.S.-Iran war. This week, President Trump said the U.S. may need to strike Iran's Pickaxe Mountain, and CNN reported the U.S. is considering using the "Mother of All Bombs." Trump has also ordered strike packages that include Iranian energy infrastructure, CNN reported.

Sources: Reuters, Trading Economics, Congressional Research Service, CNN, October 2026.