Oil prices climbed further in early trading on Wednesday, September 2, 2026, after the United States and Iran exchanged fresh strikes, heightening concerns that the escalating conflict could disrupt crude supplies from the Middle East.
Brent crude futures gained 75 cents, or 0.8 per cent, to $95.40 a barrel by 0345 GMT, while US West Texas Intermediate (WTI) crude rose 44 cents, or 0.5 per cent, to $90.66.
Both benchmarks jumped by more than $4 on Tuesday, with Brent recording its biggest daily increase since July 24 and WTI posting its strongest gain since July 23.
The latest price surge followed a major escalation in hostilities, after the United States said it had carried out a series of overnight airstrikes against targets in Iran.
Tehran responded with attacks on US-linked military positions in the region, raising fears that the conflict could further threaten energy infrastructure and shipping routes.
Iran’s Islamic Revolutionary Guard Corps (IRGC) warned that the US strikes would further restrict traffic through the Strait of Hormuz, one of the world’s most important oil transit routes.
Before the conflict, the waterway carried roughly one-fifth of global oil consumption. Iran has effectively shut the strait to commercial shipping since the outbreak of hostilities, creating mounting concerns among energy traders.
“Developments in recent days brought risks to regional oil supplies back into focus,” analysts at ING said in a client note.
“We’ve seen oil flow through the Strait of Hormuz despite the stalemate between the US and Iran, but rising tensions clearly put crossings at risk.”
The IRGC also claimed it had launched ballistic missiles at a US military base in Jordan, saying the attack killed a large number of American personnel.
Iranian state media separately reported a large-scale drone attack against a US base in Bahrain, describing the strikes as retaliation for the American attacks.
Jordan’s military said its air-defence systems intercepted 10 of 13 ballistic missiles that entered its airspace.
Two US officials, however, said no American casualties had been reported from the attacks so far.
Kuwait also said its armed forces were responding to hostile drone activity.
The latest escalation follows a weekend flare-up in fighting, the first major confrontation since July.
It also comes after two tankers departing the Strait of Hormuz were attacked on Monday, causing additional disruption to oil shipments and prompting traders to seek alternative sources of crude.
Market participants are now closely monitoring developments around the Strait of Hormuz, with further escalation potentially pushing oil prices significantly higher if major supply routes remain disrupted.
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