International Oil Prices Rise for Third Straight Day as US-Iran Clashes Intensify... Brent Crude Surges Past $95

Global oil prices are sharply rising as hostilities between the United States and Iran resume. Brent crude has surpassed $95 per barrel, soaring to its highest level in about 40 days.

Reuters Yonhap News

On September 2 (local time), November-delivery Brent crude on the London ICE Futures Exchange closed at $95.63 per barrel, up 1.04% from the previous session. On the New York Mercantile Exchange, October-delivery West Texas Intermediate (WTI) finished trading at $91.01 per barrel, an increase of 0.88%. Brent crude reached its highest price since July 24, and WTI hit its highest level since July 23.

International oil prices have surged rapidly since August 30, when the United States and Iran resumed military attacks against each other. The escalation of tensions between the two countries has heightened concerns over disruptions to crude oil supplies from the Middle East. Earlier, expectations that supply concerns might subside had risen after Iran and Oman discussed the temporary opening of maritime routes through the Strait of Hormuz. However, these hopes faded as military confrontations between the United States and Iran intensified once again.

On August 30, U.S. forces attacked an Iranian missile launch site on Larak Island in the Strait of Hormuz. The United States explained that the move was aimed at preventing Iran from redeploying naval mines into the strait. In retaliation, Iran launched missiles targeting U.S. forces stationed in Jordan.

In addition, on September 1, the United States conducted a large-scale airstrike targeting military facilities of Iran’s Islamic Revolutionary Guard Corps (IRGC). The U.S. Central Command (CENTCOM) announced it struck Iran’s air defense systems, radars, naval assets, facilities related to mine deployment, and communications facilities. According to Iranian state media, explosions occurred in several regions, including the southern port city of Bandar Abbas, as well as Qeshm Island, Konarak, and Chabahar. In response, Iran also launched missile and drone attacks targeting U.S. military facilities in Jordan, Bahrain, and Iraq.

The renewed escalation in fighting between the two sides has intensified concerns over potential disruptions to oil supply routes through the Strait of Hormuz. According to shipping data, only four vessels passed through the Strait of Hormuz in a single day, significantly lower than the recent 10-day average of about 13 vessels. Additionally, a decrease in U.S. crude inventories further fueled the rise in oil prices. According to the U.S. Energy Information Administration (EIA), as of August 28, U.S. crude oil inventories stood at 424.5 million barrels, down 4.45 million barrels from the previous week. This drop far exceeded the market's expectation of a 1.1 million barrel decline.

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