Global Tensions Spike Oil to $91, UK Weighs Major North Sea Projects

ICE Brent crude traded at $91 per barrel on Tuesday, August 18, 2026, lifted by renewed Middle East tensions, according to OilPrice.com. Former President Trump's threats and a Truth Social post acknowledging no U.S.-Iran talks, coupled with assertive Houthi attacks near the Bab el-Mandeb Strait, have heightened market volatility.

In the Strait of Hormuz, VLCC (Very Large Crude Carrier) rates have skyrocketed. Assessed earnings for a Middle East-to-China voyage have surpassed $500,000 per day, with fixing costs for inside-Hormuz cargoes jumping to $31 million per voyage. OilPrice.com reported that Saudi Aramco loaded at least three VLCCs last week—Malaysia Prosperity, Algeria Prosperity, and Singapore Prosperity—for Asian buyers via ship-to-ship transfers off Fujairah in the UAE.

Meanwhile, the UK government faces a critical decision on its North Sea oil and gas future. The public consultation has closed on the Jackdaw and Rosebank projects, which represent a total anticipated investment of £10.8 billion ($13.7 billion). OilPrice.com reported that Jackdaw could supply over six percent of UK gas by this winter, equivalent to heating 1.4 million homes. The projects together could support 3,500 construction jobs and contribute £28.7 billion to the UK economy over their lives.

In European energy markets, Romania has been forced to restart a 300-megawatt coal-fired power plant. This move comes after record-low water levels on the Danube River—the lowest in 90 years—forced the shutdown of both reactors at the country's only nuclear power plant at Cernavoda, which typically provides 20% of Romania's power. Hungary is also affected, sinking barges in the Danube to keep its Paks nuclear plant operational.

For Bakken operators, the global developments underscore a volatile geopolitical landscape supporting prices, while international investment debates and supply shocks highlight the interconnected nature of energy markets. The UK's deliberation on major projects mirrors ongoing discussions about domestic energy policy and investment climate in the United States.