Oil prices dip as cautious optimism over Iran trumps new fears of Russian escalation in Ukraine

Oil prices rose slightly on reports of a plan . Alexander Kazakov / Pool / AFP via file Add to Google Aug. 26, 2026, AM EDT / Updated Aug. 26, 2026, PM EDT a third day Wednesday as markets weighed a series of potentially positive developments in the Middle East against new fears of Russian escalation in Ukraine and dwindling U. S. crude oil fell as low as $79 per barrel early Wednesday for the first time since Aug. 13. The international oil benchmark Brent dropped to around $85 a barrel. But around midday Wednesday, oil prices made an unexpected U-turn and moved slightly higher on reports of a plan , 4½ years after the Kremlin invaded its former Soviet satellite. Prices ended the day slightly lower. S. crude oil fell to $82.23 per barrel, while Brent fell to $87.84. NBC News has not independently verified Bloomberg News’ reporting, which was a timely reminder of the pressure global energy markets face from conflicts and supply disruptions far outside the Middle East. Also driving oil prices was the U. Energy Information Administration’s announcement that oil stockpiles had risen . The report also caused prices to briefly move higher, as it underscored the mammoth task ahead to replenish U. S. reserves that have been drained in recent months. Prices were notably lower early in the day after reports from several outlets that, taken together, signaled a potential shift in how both Tehran and Washington are approaching the war after six months. The first of those developments was a reported renewal of talks between Iran and Oman about reopening the critical Strait of Hormuz in recent days. The State Department is also preparing to return American diplomats to their posts at embassies across the Middle East, The New York Times reported Tuesday. And Secretary of State Marco Rubio told U. S. allies that the Trump administration does not expect to resume military strikes on Iran, according to comments reported by Axios. Before the in Eastern Europe buffeted oil prices, President Donald Trump’s comments on social media had helped boost Iran sentiment. “I have just been informed /or detonated from within the International Waters of the Strait of Hormuz,” Trump posted Tuesday. The timing of the post raised eyebrows, however, because the text mirrors a Trump post on Aug. 18, when he wrote that “all water mines have been removed or detonated.” The shipping analytics firm Kpler reported Wednesday that “Strait crossings remain subdued.” The firm assessed that just five vessels had transited the strait Tuesday, down from seven on Monday and nine on Sunday.