Oil prices jumped sharply on Monday as fresh clashes between the United States and Iran disrupted tanker traffic in the Gulf region, pushing Brent crude towards the $100 per barrel mark. The renewed hostilities have raised global supply concerns and sent energy markets into fresh turmoil.
Brent Crude Nears $97 After US Strikes Iranian Tankers
Brent crude rose 0.8 percent to near $97 per barrel, while West Texas Intermediate stayed around $92 per barrel. The US Central Command confirmed it targeted Iranian tankers, with one vessel named Suezmax Kyle sinking in the Gulf of Oman after being hit.
Iran Retaliates With New Restricted Zone Outside Hormuz Strait
Iran’s top security officer announced a new restricted zone outside the Strait of Hormuz in response to US attacks. The move threatens to further choke commercial shipping lanes through which about 20 percent of global oil passes daily.
Brent Crude Has Surged Nearly 60 Percent This Year
Oil prices have climbed about 60 percent in 2026 as the US-Iran conflict escalated. After a brief period of calm last week, clashes reignited and pushed crude higher. Hedge funds turned most bullish on Brent since May, adding positions in the week ending September 1.
US Energy Secretary Vows Naval Presence Will Not Reduce
US Energy Secretary Chris Wright stated that the US Navy presence in the region will not decrease. The strategy includes stopping Iranian oil exports and protecting commercial vessels passing through the Strait of Hormuz, keeping tensions elevated.
Market Analysts Warn of Prolonged Supply Risk
Harris Khurshid, chief investment officer at Kroll Capital LP in Chicago, said markets have largely adjusted to the risk but warned the worst case scenario remains significant. Surveys show Americans give President Donald Trump poor ratings on handling the Iran war, as the November midterm elections approach.
