Oil rises after President Trump says no Iran talks

Oil prices edged higher on Aug. 18, 2026 after President Donald Trump said the United States is neither holding talks with the Islamic Republic of Iran nor planning any. The message briefly weighed on broader risk appetite, with equities slipping after the post before markets later pared those intraday moves, according to the source material.

Trump delivered the remarks on Truth Social, writing that “there are no talks or conversations going on, or scheduled, with the Islamic Republic of Iran.” In the same post, he said “the Naval Blockade remains in full force and effect,” while also stating that the Hormuz Strait is open.

Trump’s post highlights Hormuz access and mine concerns

Alongside the discussion of diplomacy, Trump said water mines have been removed or detonated. The source material describes that issue as a key focus for traders watching potential threats to shipping lanes and energy flows.

Market participants treated the statement as a cue to reassess geopolitical risk around crude supply routes. The initial price reaction in oil was described as a brief rise, followed by some pullback as traders reduced exposure and limited the persistence of the move.

Risk assets react, then retreat Equities weakened after the message, reflecting a short-lived deterioration in sentiment. The source material notes that those market moves later moderated, indicating that investors did not extend the reaction through the session.

The episode, as described, showed how quickly energy prices and risk assets can respond to headlines tied to maritime security. It also suggested traders were reluctant to build positions on a single presidential statement without additional confirmation from officials.

Diplomatic deadlock tempers the market response

The source material says officials have not signaled a diplomatic breakthrough and describes Washington–Tehran contacts as deadlocked for several weeks. That backdrop helped cap the market impact, even as investors remained sensitive to any perceived shift in policy or security conditions affecting shipping routes.

With no indicated change in the diplomatic channel, markets weighed the operational details in the post—such as Hormuz being open and mines being addressed—against the continued posture of a “Naval Blockade” being in effect.

Federal Reserve expectations remain a parallel driver

Beyond geopolitics, the source material says expectations for Federal Reserve policy continued to shape rate-sensitive assets and broader financial conditions. That macro backdrop remained a major input for investors, influencing how strongly markets responded to the day’s geopolitical headline.

Looking ahead, the source material highlights a near-term window for further messaging. Traders are watching for additional comments from U.S. officials or Trump through Aug. 19, 2026, as well as other U.S. statements or data releases later in the week that could affect whether volatility in oil and equities persists.

For now, the main uncertainty cited is whether further U.S. communication reinforces the posture described in the Truth Social post or provides new details that alter how traders assess risks to crude flows and broader market sentiment.