New York, Feb 19, 2026, 13:59 EST — Regular session
- Brent and U.S. WTI crude hovered close to six-month peaks, geopolitical risk back in play.
- Near-term markets tightened, with Iran-linked shipping risk and a steep drop in U.S. inventories both in play.
- Traders are eyeing new cues out of Washington and Tehran, along with the upcoming U.S. inventory report.
Oil climbed roughly 2% Thursday, pushing both Brent and U.S. West Texas Intermediate (WTI) to six-month peaks as traders zeroed in on mounting U.S.-Iran tensions. Brent futures advanced $1.25, or 1.8%, to hit $71.60 a barrel at 1:29 p.m. EST. WTI moved up $1.22, or 1.9%, to $66.41. “The market will continue to rally in anticipation of something happening,” said Andrew Lipow, president of Lipow Oil Associates. 1
This matters right now because the Strait of Hormuz handles roughly 20% of the world’s daily crude shipments—a critical bottleneck. Traders have tacked on a “risk premium” to prices, paying an extra $7 to $10 a barrel as they hedge against potential disruptions, according to Reuters columnist Clyde Russell. The market’s base case: oil keeps flowing. 2
Iran briefly closed the Strait of Hormuz on Tuesday, according to Iranian state media. It’s still unclear whether traffic through the vital waterway has completely resumed. 3
President Donald Trump urged Iran to agree to what he described as a “meaningful” nuclear deal, hinting that the coming 10 days could determine if the U.S. ramps up its response. A senior U.S. official added that Secretary of State Marco Rubio is set to meet Israeli Prime Minister Benjamin Netanyahu on Feb. 28 for talks on Iran, as the U.S. continues deploying more military assets in the area. 4
U.S. commercial crude stocks, not counting the Strategic Petroleum Reserve, dropped by 9.0 million barrels to 419.8 million barrels last week, according to the Energy Information Administration’s weekly report. Gasoline supplies slid 3.2 million barrels, distillates fell by 4.6 million, and refineries operated at 91.0% of capacity. The EIA also noted that “product supplied,” a demand gauge, averaged 21.2 million barrels per day over the last four weeks.
The drop in inventories blindsided traders, who had expected crude stocks to climb, according to a Reuters poll. Crude futures jumped after the numbers landed. “Support for oil prices came from a very bullish EIA report, showing massive draws across the board and stronger U.S. oil demand,” noted Giovanni Staunovo, a commodity analyst at UBS. On the products side, Phil Flynn at Price Futures Group highlighted a rebound: “Gasoline demand rose because people got their cars out of the snow and started driving them again.” 5
Outside the U.S., demand looks solid too. Asia’s crude imports are on track to reach an all-time high of 28.51 million barrels per day in February. Heavy buying from China and India is driving the numbers, but geopolitical shifts are changing up the supplier lineup. 6
Still, headlines dominate here. Should the standoff ease, or negotiations make enough headway to calm shipping jitters, that extra premium in crude could vanish in a hurry — prices might tumble just as swiftly as they surged.
The EIA’s next weekly petroleum status report lands on Feb. 25. In the meantime, traders are parsing each development from Washington and Tehran, along with any new ripples or easing around Gulf shipping lanes. 7
