Oil prices climb on US-Iran tensions

Global oil prices rose on Friday, September 4, as renewed US-Iran hostilities increased concerns about disruptions to crude supplies from the Middle East. Brent crude futures gained 15 cents, or 0.2%, to $95.67 a barrel, while US West Texas Intermediate (WTI) rose 26 cents, or 0.3%, to $91.56.

On a weekly basis, Brent crude has gained about 7.1%, while WTI has climbed 9.8%. Both benchmarks are heading for their strongest weekly gains since the week ended July 20.

Strait of Hormuz supply risks grow

The latest price gains came after US attacks this week killed and wounded dozens of people, including Iranian civilians, marking the most serious clashes between Washington and Tehran since July. The escalation has renewed fears that further military action could disrupt energy flows through the Strait of Hormuz.

Israeli Defence Minister Israel Katz has also renewed warnings of attacks on Iranian military and civilian infrastructure, including energy facilities. Meanwhile, US Vice President JD Vance said Washington would not negotiate with Tehran unless attacks on commercial shipping through the Strait of Hormuz stop.

Iraq oil exports offer some relief

Iran has expanded its restrictions on vessels using the strategic waterway, adding to uncertainty in global energy markets. However, Russia’s Vladimir Putin said there was still room for a deal to end the Ukraine war, potentially limiting further oil price gains.

Iraq also increased oil exports to around 2.34 million barrels per day in August, up sharply from about 1.35 million barrels per day in July, with shipments expected to rise further in September.