EBC Markets Briefing | Oil prices higher after Washington threated to collapse Iran

Oil prices hit a nearly one-month high on Friday after Trump threatened to retaliate against countries supporting Iran as part of his efforts to end the war.

The latest data shows that ship traffic through the Strait of Hormuz remained far below pre-war levels. Before the conflict, about 20% of the world's oil consumption passed through this vital route.

The UAE announced a complete suspension of all trade and financial transactions with Iran following recent ballistic missile attacks targeting its territory. This move severs Iran's most vital lifeline.

The EIA reported that US distillate stockpiles, like diesel and heating oil, dropped for the third consecutive week. However, crude oil inventories unexpectedly jumped by 4.4 million barrels.

Venezuela signed historic energy deals with two US-based companies to rebuild its energy sector and boost oil production. The country's output is already seeing a strong upward trajectory.

Latin America has emerged as the principal driver of non-OPEC+ oil supply growth in 2026, with Brazil, Guyana and Argentina expected to add more than 700,000 bpd this year.

EBC Financial Group analyst says if Brent crude gets rejected at the current $92 level, it may retest short-term support near $91.5 or $91 before gathering strength to climb again.

Asset Recap

As of market close on 20 August, among EBC major products, Micron Technology shares led gains. The company plans to spend $10 billion on its newly established research lab at Boise over the next decade.

Walmart raised its full-year financial outlook after beating analyst estimates on both the top and bottom lines, but the stock fell sharply after US same-store sales slowed.

Morgan Stanley updated its precious metals trajectory, projecting that gold prices have scope to exceed $5,000 in 2027. The bank noted that bullion raced past its original Q4 target much faster than anticipated.

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EBC Financial Group Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC Global Financial Collaboration or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

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