Oil Price Today (September 2): Crude oil nears $97 as war tensions escalate. Will it hit $100 again?
The United States said it carried out a series of airstrikes against targets in Iran overnight, drawing a response from Tehran in what was described as the most serious escalation in the conflict between the two countries in weeks.
Oil prices surged nearly 2% on Wednesday, with Brent crude futures climbing 99 cents to $96.54 a barrel and US West Texas Intermediate crude futures rising $1.55, or 1.52%, to $92. This marked the biggest gains for both contracts since early July. The surge comes after the United States and Iran exchanged military strikes overnight, raising concerns about potential supply disruptions in the Middle East.
The US launched airstrikes against targets in Iran, while Tehran retaliated with its own strikes. The most recent flare-up in hostilities follows a weekend of violence, including attacks on commercial shipping in the Strait of Hormuz and a US military base in Jordan. Iran claims it targeted a US base in Bahrain in response. The United States says its strikes were in retaliation for recent attacks by Iran's Islamic Revolutionary Guard Corps (IRGC) on commercial shipping and American service members.
The IRGC also reported targeting a US base in Jordan with ballistic missiles, though no American casualties have been reported. Jordan's military said it intercepted 10 of 13 ballistic missiles that entered its airspace. Traders are now worried that the conflict could lead to a longer disruption in oil supplies, which could push crude prices higher.
JPMorgan estimates that each additional month of disruption could raise Brent prices by $7 to $8 a barrel. If the disruption persists for three months, the bank forecasts average monthly Brent prices to reach around $114 a barrel.
Written by urgent.news from The Economic Times - Top News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
