Brent oil near 98 as Hormuz attacks deepen supply risks
Brent crude traded near six-week highs following a dangerous escalation of military strikes involving the US and Iran in and around the Strait of Hormuz.
Brent crude traded near six-week highs as a dangerous escalation of military strikes involving the United States and Iran in and around the Strait of Hormuz sent fresh shockwaves through global energy markets. The mounting hostilities have triggered fears of severe supply chain disruptions across the Middle East, pushing commodity traffic through the vital maritime chokepoint to its lowest level since May and prompting warnings from analysts of potential further price surges. Brent crude futures were down 9 cents, or 0.1%, at $96.19 a barrel by 0822 GMT on Monday, September 7, 2026, after earlier reaching $97.93, their highest level since July 24. U.S. West Texas Intermediate crude fell 45 cents to $91.03 a barrel, also close to a six-week high, according to data reported by Yahoo Finance and Tekedia.
The latest wave of conflict intensified when U.S. Forces carried out strikes against three Iranian oil tankers, including a vessel located near Kharg Island, which serves as Iran's primary oil export hub. In retaliation, the navy of Iran's Islamic Revolutionary Guard Corps targeted three oil tankers traversing unauthorized routes through the Strait of Hormuz, alongside three additional U.S.-linked vessels in separate locations, as noted by Yahoo Finance. Maritime intelligence firm Marisks identified three of the targeted Iranian tankers as the Downy, Stark I, and Kylo (also known as Noxen).
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Maritime intelligence firm Marisks characterized the weekend clashes as a major escalation, warning that commercial tankers are increasingly being utilized as direct instruments of reciprocal economic pressure. The disruption has severely choked maritime transit through the Strait of Hormuz, a corridor that traditionally handles roughly one-fifth of global oil supplies. Data compiled by analytics firm Kpler revealed that the 10-day moving average of daily commodity vessel transits fell to just 10 ships, declining from more than 15 ships on Friday and nearly 13 on Saturday.
| Crude Benchmark | Recent Session High | Latest Price Movement |
|---|---|---|
| Brent Crude | $97.93 | Down 9 cents to $96.19 a barrel |
| WTI Crude | $91.03 | Down 45 cents to $91.03 a barrel |
Market analysts have grown increasingly alarmed over the trajectory of energy costs. Priyanka Sachdeva, head of market insights at Phillip Nova, warned If tanker traffic begins to slow materially, the market could price in a much larger supply shock. And there are already signs that this is happening,
as reported by Tekedia. Meanwhile, Goldman Sachs cautioned that crude prices could climb as high as $120 a barrel if attacks on commercial shipping continue to intensify. Adding to regional supply worries, Euronext Markets highlighted that Saudi Aramco's Jazan oil refinery was attacked on Monday, with damage currently being ascertained according to sources cited by the Financial Times.
Adding to the regional uncertainty, Mohsen Rezaei, secretary of Iran's Supreme National Security Council, announced that Tehran intends to establish a restricted zone outside the Strait of Hormuz in the coming days. In the United Arab Emirates, presidential adviser Anwar Gargash noted that the nation is actively constructing alternative export routes to ensure its trade is not held hostage by the ongoing conflict, as highlighted by Euronext Markets and The Business Standard.
Against this volatile backdrop, the producer group OPEC+ elected to leave its overall oil production policy unchanged for October during a Sunday meeting, citing a need to agree on new quotas before determining subsequent output steps, as detailed by Cryptobriefing. The decision leaves global markets heavily reliant on the duration and severity of the ongoing shipping disruptions in the Gulf. Furthermore, the energy shock is rippling into broader financial conditions, compounding pressures on government bond yields and raising concerns about renewed inflationary spikes that could complicate central bank monetary policies.
What to Watch Next
- Implementation and enforcement of Iran's planned restricted maritime zone outside the Strait of Hormuz.
- Upcoming daily transit data from Kpler to determine whether shipping volumes stabilize or deteriorate further.
- Potential monetary policy adjustments and central bank responses to rising commodity-driven inflation pressures.
