Oil extends gains as US and Iran target ships in tit-for-tat attacks
Iran says a new restricted zone outside of Hormuz will be declared in the coming days
Oil prices climbed on Monday (Sep 7) as tensions escalated between the US and Iran, with tit-for-tat attacks on vessels in the Strait of Hormuz and other areas. Brent crude reached $96.80 a barrel, a 0.54% increase, while US West Texas Intermediate crude rose to $92.14 a barrel, up 0.72%. The conflict surged after US forces targeted three Iranian oil tankers on Saturday, including one near Kharg Island, and Iran's Revolutionary Guard Corps struck three tankers in the Strait of Hormuz and three US vessels elsewhere.
The attacks marked a "major escalation," according to maritime intelligence firm Marisks. Commercial tankers now transit the Strait of Hormuz at an average of 10 per day, the lowest since May. Iran announced a restricted zone would be declared in the coming days, while Opec+ maintained its oil output policy unchanged for October.
Analysts anticipate a prolonged supply disruption, likely delaying a full recovery of Middle East supply through late 2026 or even early 2027.
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Also reported by 1 other outlet
- Oil gains as US attacks on Iranian ships raise escalation risks businesstimes.com.sg
