Oil prices moved higher during a subdued trading session as geopolitical risks in the Middle East continued to support prices alongside a return of Chinese crude purchases, according to a report from Bloomberg on September 7, 2026. Brent crude briefly topped $98 a barrel before easing slightly. Iran announced that a deal with Oman to manage shipping through the Strait of Hormuz is imminent, raising questions about potential U.S. responses after American forces struck Iranian vessels over the weekend.
Tehran also warned that ships face attack risks near the Oman coastline. Separately, Saudi Aramco's oil facilities in Jazan came under fresh attack on Monday according to sources familiar with the matter. The attack was the latest in a series of strikes that have already forced a major refinery in the area to cease operations.
The pricing support from Middle East conflicts is being amplified by a rebound in Chinese crude buying. Beijing's return to purchasing crude has driven up prices for barrels from West Africa to Canada in recent days. Earlier in the conflict, China's oil-buying hiatus had been one of the key factors suppressing prices.
Oil now stands on the precipice of $100 a barrel for the third time this year. Brent crude has gained approximately 60 percent so far in 2026. Refined products such as diesel have posted even steeper gains amid the six-month conflict and separate supply disruptions caused by the Russia-Ukraine war.
Amrita Sen, co-founder and director of research at Energy Aspects, stated in a Bloomberg TV interview that crude inventory drawdowns have accelerated significantly over recent weeks. "I really think crude is poised to take a significant leg higher," Sen said. Monday's trading session was relatively subdued due to the U.S.
Labor Day holiday. The start of a major conference in Singapore also drew traders away from their desks. The Iran war, tightening global inventories, and China's demand outlook are expected to dominate discussions at the Asia-Pacific Petroleum Conference.
Hedge funds have turned the most bullish on Brent since May following the recent escalation between the U.S. and Iran. Net-long wagers on U.S. crude rose to their highest level since June during the week ended September 1. Daan Struyven, co-head of global commodities research at Goldman Sachs Group Inc., warned that in an upside price scenario where shipping attacks broaden and intensify, Brent could potentially reach $120.
"The events of the last few days do suggest that the risk of shipping disruptions broadening and intensifying is an important one," Struyven said. Source: Bloomberg via World Oil, September 7, 2026.
Source: worldoil.com