Oil dips below $90 as U.S.-Iran diplomacy eases crisis premiums

Brent crude oil dropped to $90.28 per barrel as of the morning of August 13, 2026, a decline of $1.32, or 1.44%, from the previous day's price of $91.60, according to Fortune. The dip continues a pullback in oil prices that has followed months of extreme volatility driven by the U.S.-Iran conflict and disruptions to shipping through the Strait of Hormuz.fortune

A Volatile Path From Crisis Highs

The current price, while still elevated compared to a year ago — up 38.53% from $66.12 per barrel in August 2025 — represents a steep retreat from the crisis peaks earlier in 2026. Brent surged above $120 per barrel in late April as markets priced in the effective blockade of the Strait of Hormuz, which handles roughly 20 percent of the world's seaborne oil.yenisafak+2

Prices began to unwind after a U.S.-Iran ceasefire agreement on April 8, which called for a suspension of military strikes in exchange for Tehran allowing tanker traffic through the strait. A further memorandum of understanding signed in mid-June sent oil into its steepest quarterly decline since the pandemic-era crash, with Brent and WTI losing roughly 30 percent in the second quarter.facebook+1

August Swings Reflect Fragile Diplomacy

The month of August has seen continued sharp moves. On August 3, oil prices tumbled about 7 percent after President Donald Trump held off on a fresh attack on Iran in the hope of reaching a nuclear deal, with Brent settling at $83.77 that day, according to Reuters. Prices then rallied more than $7 per barrel over the following week before easing again in recent sessions.reuters+2

The Economic Times reported that Brent futures were trading below $90 on August 13, citing persistent concerns about whether the Strait of Hormuz reopening would hold amid what it described as fragile diplomatic conditions.economictimes.indiatimes

Outlook Remains Uncertain

Despite the retreat from crisis highs, Brent remains well above the sub-$70 levels that prevailed before the U.S.-Iran conflict escalated in late February. The U.S. Energy Information Administration has projected that Brent could fall below $90 per barrel in the fourth quarter of 2026 if the conflict fully resolves. Over the past month alone, however, prices have risen more than 14 percent from $78.92, underscoring the market's sensitivity to any shift in Middle Eastern diplomacy.fortune+1