"World oil prices" continue to surge, surpassing $95, as the US and Iran launch a new round of attacks.
"Global oil prices" continue to surge, surpassing $95 amid a new wave of attacks between the US and Iran. The market is concerned that the escalating tensions will impact shipping through the Strait of Hormuz.
On September 2, 2026, at 1:10 PM, Reuters reported that global oil prices continued to rise on Wednesday morning after a sharp surge the previous day, amid concerns that oil supply could be further disrupted after the United States and Iran launched another attack overnight, diminishing hopes that tensions in the Middle East would ease anytime soon.
Brent crude oil prices rose $1.03, or 1.1%, to $95.68 per barrel at 06:05 GMT, while West Texas Intermediate (WTI) crude increased 61 cents, or 0.7%, to $90.83 per barrel.
The rise comes after both types of oil contracts surged more than $4 per barrel on Tuesday, with Brent hitting its biggest increase since July 24 and WTI its biggest gain since July 23.
The United States revealed that it carried out multiple airstrikes against targets in Iran overnight, prompting a retaliatory response from Tehran, marking the most severe escalation of conflict between the two countries in weeks.
Iran's Islamic Revolutionary Guard Corps (IRGC) stated that the US attack would further restrict passage through the Strait of Hormuz, a vital energy shipping route. Prior to the conflict, approximately one-fifth of the world's oil was transported through this strait. Iran has already effectively blocked commercial shipping through the waterway.
ING analysts stated that recent events have brought the risk to regional oil supply back into the market's focus. While some oil continues to flow through the Strait of Hormuz amid the standoff between the US and Iran, heightened tensions pose increased risks to transportation along that route.
The IRGC also stated that it had fired missiles at US bases in Jordan, claiming that many US personnel were killed. Meanwhile, Iranian state media reported that numerous drones were used to attack US bases in Bahrain in retaliation for the US attack.
However, the Jordanian army stated that its air defense system intercepted 10 out of 13 missiles that entered Jordanian airspace. Meanwhile, two U.S. officials stated that, so far, there have been no reports of American citizens being killed or injured in the attack.
Kuwait revealed that its military is dealing with drone activity that poses a threat in the area.
The market is more focused on oil supply than on the risk of war.
The latest exchange of attacks follows escalating clashes over the weekend, the first collisions since July, and comes after two oil tankers leaving the Strait of Hormuz were attacked on Monday.
This incident further disrupted the oil supply and forced oil traders to look for alternative sources of crude oil.
Priyanka Sachdeva, Head of Market Insight at Phillip Nova, believes that the oil market is no longer reflecting only the risk of war, but is increasingly reflecting the costs of an unresolved war.
As long as there is no clear evidence that negotiations can lead to a sustainable agreement and the normal flow of oil through the Strait of Hormuz returns, the risk premium on crude oil prices is likely to remain high.
Meanwhile, data from the American Petroleum Institute (API) indicated that U.S. crude oil stockpiles, from the world's largest oil producer, fell by 2.6 million barrels in the week ending August 28. Stockpiles of refined products, including diesel and heating oil, also decreased by 265,000 barrels, further supporting oil prices in the market.
Reference: www.reuters.com
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