Oil tops $95 as renewed US-Iran hostilities fuel supply fears

September 4, 2026 (MLN): Oil prices climbed on Friday and remained on course for their strongest weekly advance since mid-July as escalating U.S.-Iran hostilities intensified concerns over potential disruptions to crude supplies from the Middle East.

Currently, Brent crude futures is down, 0.02%, at $95.50 per barrel, according to data by Mettis Global.

West Texas Intermediate (WTI) crude futures is down by $0.21, or 0.23%, to $91.51 per barrel by [10:34 pm] PST.

Brent crude was up 7.1% on the week, while West Texas Intermediate (WTI) gained 9.8%, putting both benchmarks on track for their biggest weekly increases since the week ended July 20.

Market sentiment remained supported by renewed military confrontations between the United States and Iran. U.S. strikes during the week killed and injured dozens of people, including Iranian civilians, marking the most intense clashes between Washington and Tehran since July.

The conflict, which began following U.S. and Israeli strikes in late February, has now entered its seventh month, keeping geopolitical risks elevated across global energy markets.

Adding to concerns, Israeli Defence Minister Israel Katz warned that Israel would target Iran’s military and civilian infrastructure, including energy installations, raising fears of further disruptions to regional oil supplies, according to CNBC.

U.S. Vice President JD Vance also said Washington would not enter negotiations with Tehran unless Iran halts attacks on commercial vessels transiting the Strait of Hormuz, a critical global oil shipping route.

Iran, meanwhile, expanded the list of vessels it considers non-compliant with its transit requirements. Such vessels could face fines, seizure or detention if they attempt to pass through the Strait of Hormuz. Iraqi vessels remain among the limited number of ships Tehran has permitted to transit the waterway.

Oil’s gains were partly restrained by developments surrounding the Russia-Ukraine conflict. Russian President Vladimir Putin said a potential route toward a peace agreement remained open and indicated that both the United States and China were willing to support efforts aimed at ending the war.

Elsewhere, Iraq significantly increased its crude exports in August to around 2.34 million barrels per day, compared with approximately 1.35 million bpd in July, according to Iraqi energy officials.

Iraq’s September exports are also expected to rise as steep discounts and Iranian clearance for Iraqi tankers have helped attract buyers, potentially providing additional crude supply to the international market.

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