Oil prices extend gains as US and Iran trade fresh strikes

On September 2, Brent crude prices rose 1 percent in a volatile session, propelled by renewed military strikes between the U.S. and Iran that have limited global oil supply. The seventh month of the ongoing U.S.-Iran war saw the latest attacks being the most intense since July. U.S. forces launched strikes on Iran's southern coast, while Iran retaliated by firing on American bases across the region.

Brent crude futures climbed to $95.63 a barrel, while U.S. West Texas Intermediate crude futures increased to $91.01. Both benchmarks experienced fluctuations ranging from $2 to $1 per barrel throughout the session, reaching their highest levels since July 24. Mark Schaefer, a director at Liquidity Energy brokerage, noted that the main concern for the oil market is whether the renewed fighting will lead to another deterioration in physical flows through the region.

The conflict started with joint U.S.-Israeli strikes on Iranian targets in late February, during which Iran effectively shut down shipping traffic in the Strait of Hormuz, a crucial waterway carrying around a fifth of global oil and LNG before the conflict.