Oil prices near US$100 as Middle East supply risks mount

Oil prices near US$100 as Middle East supply risks mount, as escalating hostilities between the US and Iran, attacks on Saudi energy infrastructure, and threats to Gulf shipping heighten concerns over global oil disruptions. BRENT crude surged above US$99 a barrel on Wednesday, nearing the US$100 threshold due to heightened risks to oil production and shipments across the Middle East.

US strikes on Iranian crude tankers near Kharg Island, in retaliation for an attempted missile attack on a US warship, intensified fears of wider disruptions. Iran retaliated with ballistic missiles towards Jordan and warned tanker crews near Kuwaiti and Bahraini ports to abandon their vessels. The conflict has also spread to Saudi Arabia, with Houthi militants attacking energy infrastructure, including the 400,000-barrel-a-day Jazan refinery.

Asian refiners are seeking alternative crude supplies as uncertainty grows around Gulf supplies, particularly through the Strait of Hormuz. Stronger Chinese demand is pushing prices up for African, Canadian, and Latin American crude. The surge in oil prices has also heightened inflation concerns and could complicate monetary policy decisions by major central banks.

The US dollar index slipped to around 98.8 on Tuesday, declining for a second consecutive session. Investors are awaiting US inflation data for further clues on the Federal Reserve's interest-rate outlook ahead of its policy meeting next week. Malaysia's ringgit weakened slightly, with the USD/MYR exchange rate rising to 4.0675 on September 9, 2026, up 0.15% from the previous session.