Crude Oil Prices Rise as US-Iran Tensions Lift Supply Concerns | September 4, 2026

Crude oil prices rose on Friday, September 4, 2026, as renewed US-Iran hostilities raised concerns over possible disruptions to supplies from the Middle East. Brent crude and US West Texas Intermediate (WTI) were both heading for their strongest weekly gains since July. 

Brent crude futures gained 15 cents, or 0.2%, to US$95.67 a barrel at 0100 GMT. WTI futures rose 26 cents, or 0.3%, to US$91.56. Brent was up 7.1% for the week, while WTI had gained 9.8%. 

US-Iran Conflict Raises Supply Risks 

Oil markets have come under renewed pressure from escalating tensions between Washington and Tehran. US attacks this week killed and wounded dozens of people, including Iranian civilians, marking the fiercest clashes between the two countries since July. 

The conflict, which began with US and Israeli strikes at the end of February, has now entered its seventh month. Israeli Defence Minister Israel Katz has also warned that Israel could target Iran’s military and civilian infrastructure, including energy facilities. 

Strait of Hormuz Remains a Key Concern 

Attention is also centred on the Strait of Hormuz, a crucial route for global oil shipments. US Vice President JD Vance said Washington would not hold talks with Iran unless Tehran stops attacks on commercial shipping through the strait. 

Iran has expanded its list of vessels considered non-compliant and warned that such ships could face fines, confiscation or detention if they attempt to cross Hormuz. Iraqi vessels remain among the few ships cleared by Tehran to pass through the waterway. 

Ukraine Developments Limit Further Oil Gains 

Geopolitical tensions have supported crude oil prices, although comments from Russian President Vladimir Putin offered some relief to markets. Putin said a path remained open towards an agreement to end the war in Ukraine and that both the US and China were prepared to support a peace settlement. 

Read More: India and Belgium Sign Defence MoUs and Contracts, Discuss Maritime Security in Indo-Pacific! 

Iraq Raises Oil Exports 

Higher Iraqi exports have provided some counterweight to supply concerns. Iraq increased oil exports to around 2.34 million barrels per day in August from about 1.35 million bpd in July, according to Iraqi energy officials. September exports are also expected to rise, helped by heavy discounts and Iranian approval for Iraqi tankers. 

Conclusion 

Crude oil prices remain sensitive to developments between the US and Iran, particularly any disruption to shipping through the Strait of Hormuz. Rising regional tensions are supporting prices, while higher Iraqi exports and hopes for progress in Ukraine are limiting some of the upside. 

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