Crude Oil Prices Edge Lower as Markets Assess US-Iran Strikes and Strait of Hormuz Risks | September 3, 2026

Crude oil prices slipped on Thursday, September 3, 2026, as investors weighed renewed military action between the United States and Iran and the potential impact on Middle East oil supplies. 

Brent crude futures fell 43 cents, or 0.45%, to US$95.20 a barrel, while US West Texas Intermediate crude futures declined 24 cents, or 0.26%, to US$90.77. 

US-Iran Strikes Keep Oil Markets Uncertain 

The latest exchange of fire between the US and Iran was the most substantial since July 2026, with the conflict now in its seventh month. Oil prices moved sharply during the previous session, with both Brent and WTI swinging between gains of around US$2 a barrel and losses of about US$1. 

Both benchmarks reached their highest intraday levels since July 24 before retreating as signs emerged that the latest escalation could be easing. 

IG analyst Tony Sycamore said the absence of confirmed exchanges of fire since around midday on Wednesday, Sydney time, had helped reduce some of the immediate pressure on prices. 

Strait of Hormuz Remains in Focus 

Concerns over oil shipments through the Strait of Hormuz remain central to the market outlook. Preliminary data from Kpler showed that four commodity vessels passed through the waterway on Wednesday, well below the 10-day average of around 13. 

Iran has also added more vessels to its list of ships considered non-compliant, leaving them potentially exposed to fines, confiscation or detention if they attempt to transit the strait. 

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Trump Signals Further Military Action 

US President Donald Trump said the renewed US campaign against Iran would not continue for “too long”. He said US forces had targeted Iranian radar and missile systems and indicated that further attacks remained possible. 

The US said 17 million barrels of oil crossed the Strait of Hormuz on Monday, describing it as the highest crude volume to pass through the waterway since the US-Israeli war on Iran began. 

Conclusion 

Crude oil prices remain sensitive to developments around the Strait of Hormuz. Any sustained improvement in shipping activity could ease supply concerns, while renewed military action could quickly push prices higher. 

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