Global oil prices continued to rise on May 18 amid growing concerns about supply disruptions. Investors are closely monitoring the situation surrounding Iran and the Strait of Hormuz, through which a significant portion of the world's oil and gas exports previously passed.
On May 18, 2026, global oil prices showed an increase amid concerns about a prolonged supply shortage due to a deadlock in peace negotiations between the US and Iran, CNBC reports.
July futures for Brent crude rose by 1.27%, reaching $110.65 per barrel, while June contracts for American West Texas Intermediate increased by 1.75% to $107.26 per barrel. The International Energy Agency warned that global oil reserves are being depleted at record rates due to the closure of the Strait of Hormuz, and "the rapid reduction of reserves amid ongoing disruptions could herald future price spikes." Experts from Swiss bank UBS noted that if demand remains at current levels, reserves could approach a historic low of 7.6 billion barrels by the end of May.
Tensions between Washington and Tehran persist despite a fragile ceasefire reached in April. Iran continues to block the Strait of Hormuz, through which nearly one-fifth of the world's oil and gas supplies passed before the conflict, while the administration of US President Donald Trump maintains the blockade of Iranian ports. The American leader recently issued a warning, stating that for Iran, "time is running out."
Amid ongoing tensions between Washington and Tehran, the oil market remains extremely unstable. Experts believe that further reductions in global reserves and a potential prolongation of the conflict could lead to new spikes in energy prices in the coming weeks.
