Oil Prices Today, September 10, 2026: Brent Holds Above $100 As Middle East Conflict Raises Supply Concerns

Mumbai, September 10: Brent crude remained above the $100-a-barrel mark on Thursday as the widening Middle East conflict heightened concerns over disruptions to global energy supplies and revived inflation fears. Brent futures were down 0.2% at $101 a barrel, while US West Texas Intermediate crude rose 0.04% to $96.09 a barrel. The move came after Brent crossed $100 on Wednesday for the first time since July, putting energy markets and the inflation outlook firmly back in focus. 

Oil stays above $100 

The latest gains in crude have come as attacks on shipping in the Middle East intensified, increasing concerns that the conflict could disrupt supplies for an extended period. 

Brent remained above $100 as conflict escalated in the Middle East. Source: Oilprice.com

The breach of the $100 level is significant for markets because it could feed into inflation expectations at a time when investors are already closely watching central banks. Higher crude prices raise transportation and production costs across economies and can make it more difficult for policymakers to bring inflation down. 

The latest escalation has also expanded beyond the primary theatre of conflict. Fighting between Saudi Arabia and the Houthis in Yemen has intensified, creating another potential threat to energy infrastructure and crude flows from the Middle East. The six-month conflict shows little sign of easing, keeping the risk premium in oil elevated. 

Inflation fears return 

The oil rally has reignited concerns that higher energy costs could keep inflation elevated for longer. Investors are particularly focused on the implications for US monetary policy, with producer price inflation and consumer price inflation data due later on Thursday and Friday, respectively. 

The data will be closely watched ahead of the Federal Reserve’s September 15-16 meeting. Fed funds futures were pricing in about a 60% probability of a rate hike next week. 

Higher oil prices are complicating the policy outlook because they could add to headline inflation even as economic growth remains vulnerable to tighter financial conditions. 

Bond yields add to pressure 

The rise in crude has coincided with elevated US Treasury yields, adding another challenge for risk assets. The benchmark 10-year US Treasury yield stood at 4.8406% on Thursday after touching its highest level since 2023 in the previous session. 

The move came after the US Treasury announced a $6 billion buyback of longer-dated bonds, disappointing some investors who had expected a larger purchase. Higher yields can weigh on equity valuations by increasing the relative attractiveness of bonds while raising the cost of capital for companies. 

The combination of expensive oil and elevated bond yields has therefore created a difficult backdrop for global equities. Asian stocks dropped on Thursday. 

Impact on India 

For India, a prolonged period of crude prices above $100 could present a fresh challenge because the country is heavily dependent on imported oil. Sustained higher crude prices can put pressure on the trade deficit and the rupee while increasing the risk of imported inflation. 

The impact is likely to be felt differently across sectors. Oil marketing companies and other fuel-sensitive businesses could face margin pressure if elevated crude prices are not fully passed through to consumers. Airlines, paints, chemicals and other industries with high fuel or petroleum-linked input costs could also come under pressure. 

Energy producers, on the other hand, could benefit from higher crude prices. The broader Indian market may remain sensitive to movements in oil, the rupee and foreign portfolio flows as investors assess whether the current spike is temporary or marks the beginning of a more sustained period of expensive energy. 

With Brent holding above $100 and the Middle East conflict showing signs of broadening, oil is likely to remain one of the biggest drivers of global risk sentiment in the near term. Investors will now look to US inflation data and developments in the conflict for clues on whether the crude rally can extend further or begin to ease. 

Source

• oilprice.com