Oil extends rally with Brent above US$95 on Hormuz fears
Brent settled at US$95.63 and WTI at US$91.01 as renewed US-Iran attacks, reduced Hormuz traffic and falling US crude stocks fuelled supply fears
- Oil prices rose, with Brent crude exceeding US$95 a barrel, due to fears of supply disruptions through the Strait of Hormuz amid renewed military conflict between the US and Iran.
- The military escalation involves US airstrikes and retaliatory Iranian missile attacks, with Iran warning of further restrictions on shipping and reports of tankers striking sea mines.
- Concerns over physical oil flows were amplified by conflicting data on vessel traffic through the strait, contributing to high market volatility.
- A larger-than-expected decline in US crude inventories provided additional support for the price rally.
Global oil prices extended their gains on Wednesday (September 2, 2026), as renewed military exchanges between the United States and Iran heightened concerns about further disruption to supplies through the Strait of Hormuz.
Brent crude futures for November delivery gained 98 US cents, or 1.04%, to settle at US$95.63 a barrel. US West Texas Intermediate (WTI) crude for October delivery rose 79 cents, or 0.88%, to US$91.01 a barrel.
Trading remained highly volatile. Both benchmarks moved between gains of as much as US$2 a barrel and losses of around US$1, with their intraday peaks reaching the highest levels recorded since July 24.
The latest fighting marked the sharpest escalation in several weeks. US forces launched a new round of air strikes on Tuesday (September 1), targeting Iranian radar and mine-laying capabilities, while Iran retaliated by firing missiles at US bases across the Middle East.
Liquidity Energy said the escalation had renewed concerns that physical oil flows through the region could deteriorate further.
Conflicting signals from Hormuz traffic
Preliminary tracking data from Kpler showed that only four commodity vessels crossed the Strait of Hormuz, well below the 10-day average of approximately 13.
However, US Energy Secretary Chris Wright said more than 17 million barrels of oil passed through the waterway on Monday (August 31), which he described as the highest daily volume since the conflict began in February.
Iran’s Islamic Revolutionary Guard Corps said two oil tankers struck sea mines and lost control while attempting to navigate the strait. It also warned that the US attacks would lead to further restrictions on shipping.
US crude stocks fall more than expected
A larger-than-forecast decline in US crude inventories provided additional support for oil prices.
The US Energy Information Administration reported that crude stocks fell by 4.5 million barrels last week, compared with analysts’ expectations for a decline of 1.1 million barrels.
US petrol inventories dropped by 1.2 million barrels, less than the expected reduction of 1.9 million barrels.
Distillate inventories, including diesel and heating oil, increased by 796,000 barrels. Analysts had expected them to decline by 1.3 million barrels.
Investors are now awaiting the OPEC+ meeting on Sunday (September 6, 2026). The market expects the producer alliance to keep its oil-output policy unchanged for October.
