Oil Price Today (September 3): Crude oil flat at $96 as traders weigh fresh US-Iran attacks. What are experts saying?

On September 3, crude oil prices remained relatively stable at $96 per barrel, with traders closely monitoring the ongoing tensions between the United States and Iran. The latest attacks between the two nations marked the most significant exchange of fire in the ongoing conflict, which has been in progress for seven months. U.S. President Donald Trump announced that the U.S. campaign against Iran would not continue indefinitely, targeting Iran's radar and missile systems.

The U.S. Navy destroyed Iran's new equipment in the Strait of Hormuz, including defensive and offensive systems. However, shipping through the vital waterway remained below average, with only four commodity vessels passing through on Wednesday compared to a 10-day average of around 13 vessels. Iran has also added more ships to a list of non-compliant vessels that could face fines, confiscation, or detention if they attempt to sail through the strait.

Experts are divided on the potential impact of the situation on oil prices. JPMorgan estimates that each additional month of disruption could add $7 to $8 per barrel to Brent prices, with average monthly Brent prices potentially reaching $114 if the disruption lasts three months. Goldman Sachs warns that Brent could climb to $120 if shipping disruptions persist, while also noting that the risks remain tilted to the upside if the Strait of Hormuz and the Red Sea disruptions last longer than anticipated.

Ponmudi R, CEO of Enrich Money, believes that crude prices will continue to be closely tied to developments around the Strait of Hormuz. A sustained recovery in shipping flows could reduce the geopolitical premium in crude, benefiting emerging-market equities. However, a fresh disruption could quickly reverse this trend.