Oil prices jumped 5% on Thursday, with both major benchmarks trading above $100 a barrel as escalating attacks on shipping in the Middle East fueled concerns about further disruptions to already tight global supplies. Brent crude futures rose $5.39, or 5.33%, to $106.60 a barrel by 11:49 a.m. ET on September 10, 2026.
U.S. West Texas Intermediate crude futures climbed $5.16, or 5.37%, to $101.21 a barrel, marking the first time WTI topped $100 since May. Brent prices have surged more than 30% from lows touched in early August, as diplomatic efforts to de-escalate tensions between the U.S. and Iran failed to materialize and fighting resumed.
Iran-aligned Houthis seized control of Yemen's port of Mocha on Thursday, creating additional threats to Red Sea shipping corridors. Meanwhile, Gulf traffic remains restricted through the Strait of Hormuz as tanker attacks in the region have intensified in recent days. Simon-Peter Massabni, head of business development at XS.com, noted that attacks from Yemen on Saudi energy facilities introduce a fresh source of market risk.
The threat has expanded beyond traditional choke points to include potential disruptions across regional export routes, oil production sites and broader energy infrastructure. Geopolitical tensions escalated further as U.S. President Donald Trump warned that the U.S. may strike Iran's Pickaxe Mountain near its damaged Natanz uranium enrichment facility.
Iran claimed it had attacked 10 ships near the Strait of Hormuz on Wednesday, following U.S. strikes on five Iranian oil tankers. Iran's Islamic Revolutionary Guard Corps stated it would escalate its response to any further attacks. According to S&P Global Energy analysis, with prospects for resolving the Iran conflict diminished and Brent crude prices recently topping $100 for the first time since July, crude oil markets are now settling into a prolonged environment where disruption risk is persistent rather than episodic.
Market analysts indicated that the sustainability of the rally will depend significantly on Chinese crude demand. China, the world's largest crude importer, has stepped up purchases in recent weeks after months of subdued demand, boosting physical crude markets according to ING analysts. If Chinese buying continues to recover, it could amplify the impact of supply disruptions and drive prices higher.
Conversely, a pullback in Chinese imports could temper market gains. David Jorbenaze, global oil market lead at commodities information provider ICIS, emphasized that the bearish case that had prevailed for months rested on weak Chinese demand. On the supply side, OPEC lowered its forecast for world oil demand growth in 2026 to 380,000 barrels per day, marking the fifth consecutive downward revision.
OPEC oil output fell by 640,000 barrels per day in August, according to a Reuters survey, as Saudi exports faced disruptions due to regional conflict and a U.S. blockade reduced Iran's shipments. Source: Reuters, Yahoo Finance
Source: finance.yahoo.com