Crude Rises as U.S.-Iran MOU Extension Is Ruled Out

In brief: Crude futures rose on Monday as CNBC and Reuters described stalled U.S.-Iran diplomacy, while Iran ruled out extending the memorandum of understanding. The reports also documented severely reduced Strait of Hormuz traffic: Kpler recorded three vessel transits on Sunday. Price readings must be kept distinct: CNBC reported settlements, while Reuters reported an intraday snapshot at a specified GMT time. CNBC, Reuters, Chloe Taylor,Anniek Bao

What is driving the market?

Crude prices rose Monday after Iran and the United States ruled out extending the memorandum of understanding signed in June to end the conflict, CNBC reported. The agreement was set to expire Monday, and CNBC said the diplomatic process showed no progress. CNBC

Iranian Foreign Ministry spokesman Esmail Baghaei ruled out talks to extend the memorandum of understanding. CNBC reported that the arrangement was intended to open the Strait of Hormuz while the parties negotiated a final nuclear agreement within 60 days. CNBC

President Donald Trump said he would not seek to extend the ceasefire with Iran. He also threatened to bomb Oman if it interfered with negotiations, according to CNBC. CNBC

Reuters reported that both Brent and WTI gained more than 5% in the prior week following attacks on tankers operated by Abu Dhabi National Oil Company in Hormuz and on a Saudi Aramco refinery. Reuters

Reuters described the absence of major supply outages as limiting oil-price gains despite the lack of diplomatic progress. That account frames the day’s advance as a move that occurred without Reuters reporting major supply outages. Reuters

Why does it matter to investors?

Reported fact: Ship movements through Hormuz were near a standstill on Sunday, according to Kpler data cited by CNBC, although three vessels did cross the strait. CNBC

Vault of Money analysis: CNBC’s $84.50 and $90.87 figures are reported settlement levels, while Reuters’ $89.44 and $82.95 readings were recorded by 1002 GMT. Those measurements have distinct source labels and time references, so they should not be treated as one single price observation. CNBC, Reuters

What should investors watch next?

Monitor vessel-transit data and any further disruption to crude flows through the Strait of Hormuz, as well as any closure of the Bab el-Mandeb Strait. SEB Research’s Bjarne Schieldrop identified those conditions in an assessment of what would be needed for substantially higher oil prices. Reuters

Monitor Chinese oil-import data. Bob McNally of Rapidan Energy told CNBC that China had cut imports by 4 million barrels per day to 5 million barrels per day and said refiners may be allowed to import more. CNBC

Key takeaways

• Monday’s crude advance coincided with reports that U.S.-Iran diplomacy had not progressed and that an extension of the memorandum of understanding was ruled out. CNBC
• Hormuz traffic data and separately timed Brent and WTI price measurements provide observable markers for tracking the market without treating distinct quotes as a single level. CNBC, Reuters

Sources

• CNBC: Brent oil rises above $90 as Iran rules out interim deal extension, threatens to escalate conflict (August 17, 2026)
• Reuters: Oil settles up over $2 as Iran war stalemate stokes supply concerns (August 17, 2026)
• Chloe Taylor,Anniek Bao: Trump's Oman bomb threat an attempt to get their 'attention,' says former ambassador (August 18, 2026)