Brent crude prices rose 1% in a volatile trading session on Wednesday, September 2, 2026, driven by renewed military strikes between the United States and Iran that have further restricted global oil supply. The U.S.-Iran conflict, now in its seventh month, saw the recent attacks represent the biggest exchange of fire between Tehran and Washington since July, with U.S. forces striking Iran's southern coast and Iran firing on American military bases across the region. Brent crude futures rose $1.12, or 1.2%, to $95.76 per barrel by 1:06 p.m.
ET, while U.S. West Texas Intermediate crude futures advanced 92 cents to $91.18. Both benchmarks swung between gains of as much as $2 per barrel and losses of $1 per barrel throughout the session, with session highs representing the highest levels since July 24.
The conflict, which began with joint U.S.-Israeli strikes on Iranian targets in late February 2026, has severely impacted maritime traffic through the Strait of Hormuz, a critical waterway that carried approximately one-fifth of global oil and liquefied natural gas consumption prior to the conflict. Iran has effectively shut down shipping traffic through this vital passage, forcing nations worldwide to seek alternative supply sources and draw down their strategic reserves. According to preliminary Kpler shipping data, only four commodity vessels transited the Strait of Hormuz on Tuesday, below the 10-day average of approximately 13 vessels.
The Islamic Revolutionary Guard Corps stated that U.S. attacks would further restrict traffic through the strait. On Wednesday, Iran's Revolutionary Guards reported that two oil tankers hit sea mines and were disabled while attempting to transit the waterway. Additionally, Iran added more ships it deems non-compliant to a list subject to potential fines, confiscation, or detention.
U.S. Secretary of Energy Chris Wright claimed on Tuesday that 17 million barrels of oil transited the Strait of Hormuz on Monday, describing it as the largest volume since the Iran war began. However, market participants acknowledge that alternative crude oil supplies continue to reach markets, albeit through more circuitous routes.
Dennis Kissler, senior vice president of trading at BOK Financial, commented that while increased conflict will slow transit through the Strait of Hormuz in the near term, the market has adapted to the reality that workaround crude supplies can still eventually reach consumers. Iraq has become increasingly important as an alternative source, with the nation boosting oil exports in August and shipments expected to climb further in September as strong profit margins and Iranian approval for Iraqi tankers to pass through the Strait of Hormuz have encouraged buyers. On the production front, OPEC+ is likely to maintain its oil output policy unchanged for October at a meeting scheduled for Sunday, according to three sources close to the matter who spoke with Reuters.
The producer group is completing the unwinding of one layer of production cuts this month while shifting its focus toward 2027 quota negotiations. In related developments, Russia conducted a heavy missile and drone attack on energy infrastructure in Ukraine's southern region of Odesa overnight, according to transmission system operator Ukrenergo. In the United States, crude oil inventories fell by 4.5 million barrels last week, the Energy Information Administration reported on Wednesday, exceeding analysts' expectations for a 1.1 million-barrel draw.
Source: Reuters, Yahoo Finance
Source: finance.yahoo.com