Oil Prices Today, September 1, 2026: Brent Tops $91 As Renewed U.S.-Iran Fighting Revives Supply Disruption Fears

Mumbai, September 1: Oil prices climbed further on Tuesday as renewed fighting between the United States and Iran revived concerns over disruptions to crude supplies from the Middle East, particularly through the strategically important Strait of Hormuz. 

Brent crude futures rose 0.7% to $91.13 a barrel, while U.S. West Texas Intermediate crude gained 1% to $86.62. The gains came after Brent jumped 2.7% and WTI advanced 2.8% in the previous session, with both benchmarks touching their highest levels in several days. 

Strait Of Hormuz Risk Returns 

The latest escalation has put the security of oil shipments through the Strait of Hormuz firmly back at the centre of the market’s attention. 

U.S. President Donald Trump threatened further strikes against Iran after the two sides exchanged direct attacks over the weekend, raising fears that the conflict could spill over into energy infrastructure and shipping routes across the Gulf. 

The Strait of Hormuz handled about a fifth of global oil supplies before the conflict erupted in late February. However, shipping activity through the waterway has remained severely restricted. Kpler data showed visible commodity vessel transits falling to just five a day over the weekend. Efforts by Qatar and Oman to broker an agreement to reopen the strait have so far failed to gain traction. 

The shipping risks were underscored on Tuesday after the United Kingdom Maritime Trade Operations agency said a tanker reported being hit by three projectiles while sailing out of the Strait of Hormuz. No casualties or environmental impact were reported. 

Supply Disruptions Keep Oil Elevated 

The latest rise in crude prices reflects renewed fears over both physical supply and the ability to transport oil safely from the region. 

While global oil markets have adapted to lower flows since the start of the conflict, prolonged restrictions could tighten supplies further. The impact is increasingly being felt in refined fuel markets as well, particularly for diesel and jet fuel. 

Asia’s imports of refined fuels fell to 5.10 million barrels per day in August, their lowest level since the conflict began, according to Kpler data. Imports were down from 5.61 million bpd in July and nearly 2 million bpd below the average recorded in the three months before the war. 

Singapore gasoil prices have surged about 70% since the start of the conflict, highlighting the growing strain in refined-product markets. 

Also Read: How To Invest In Crude Oil

U.S. Oil Reserves Near 44-Year Low 

The United States is also facing pressure to replenish its strategic oil reserves. 

The country’s Strategic Petroleum Reserve declined by another 3.1 million barrels last week to 286.6 million barrels, leaving inventories close to a 44-year low, according to the Reuters report. 

Trump has announced a deal involving Venezuela’s oil reserves that he said would help replenish the U.S. reserve. Energy companies including Chevron and GE Vernova, along with India’s Oil and Natural Gas Corp, Italy’s Eni and Colombia’s GeoPark, are also progressing towards final agreements on energy projects in Venezuela, according to sources cited by Reuters. 

The developments could eventually provide additional supplies to the global market, but they are unlikely to immediately offset the risks surrounding Middle Eastern shipments. 

Oil Outlook Remains Elevated 

The combination of geopolitical uncertainty, restricted shipping and tight refined-fuel supplies is keeping the outlook for crude prices firm. 

Analysts polled by Reuters in August expect oil prices to remain above $80 a barrel through 2026, reflecting continued uncertainty over shipping and supply from the Middle East. 

The latest move above $90 is also adding to concerns about inflation and interest rates. Global bond yields rose sharply on Tuesday, with the 10-year U.S. Treasury yield climbing to around 4.78%, as higher oil prices revived concerns over inflation. 

For India, the rise in crude is a significant concern given the country’s dependence on imported oil. A prolonged period of Brent above $90 could widen the import bill, put pressure on the rupee and add to inflationary pressures. 

Higher crude prices could also squeeze margins for airlines, paints, chemicals and other fuel-intensive industries, while upstream producers such as ONGC could benefit from stronger realisations. 

The renewed oil rally therefore presents a fresh headwind for Indian equities, even as domestic economic growth remains strong. Investors will closely track crude prices, developments around the Strait of Hormuz and the broader U.S.-Iran conflict for signs of whether the latest spike is temporary or could turn into a prolonged supply shock. 

Source

• Oilprice.com