Oil Prices Rise Amid U.S.-Iran Military Escalation
On Monday, September 7, oil prices reached their highest levels in six weeks as military exchanges between the United States and Iran increased concerns about energy supplies and regional stability in the Middle East.
Brent crude futures, the international benchmark, rose 1.5% to $97.73 per barrel after briefly touching $97.93, their highest level since July 23. West Texas Intermediate, the main U.S. benchmark, gained 1.8% to $93.10 per barrel, also reaching a level last recorded in late July.
Tensions intensified after the U.S. military said it struck three Iranian oil tankers on Saturday. U.S. Central Command said the action followed Iranian ballistic missile launches targeting two Navy warships. CENTCOM described the tankers as part of a network financing Iran’s Revolutionary Guard and affiliated regional groups.
Iran’s Foreign Ministry condemned the strikes, characterizing them as a war crime and economic warfare. On Monday, Iranian Parliament Speaker Mohammad Baqer Qalibaf said attacks on Iranian assets would prompt retaliation. His statement responded to Defense Secretary Pete Hegseth, who said the United States would destroy Iranian oil tankers if Iran fired on U.S. vessels.
Separate reports added to market uncertainty. The Financial Times reported that Saudi Aramco facilities in Jizan, Saudi Arabia, were attacked Monday. The city contains a refinery capable of processing 400,000 barrels per day. The extent of the damage was still being assessed, and responsibility for the incident remained unclear.
The developments placed renewed attention on potential disruptions to oil production and shipping near the Strait of Hormuz, a critical route for global energy trade. Traders responded by raising crude prices as they evaluated the possibility of additional strikes, damage to infrastructure, or threats to commercial and military vessels. No immediate supply losses were confirmed in the information available Monday. Markets remained focused on further military developments and official supply assessments.