Oil price rises above $90 as renewed US-Iran attacks raise supply fears

Oil prices extended gains on Tuesday, September 1, 2026, as renewed military exchanges between the United States and Iran heightened concerns over potential disruptions to crude supplies from the Middle East.

Brent crude futures rose 66 cents, or 0.7 per cent, to $91.15 per barrel by 0640 GMT, while U.S. West Texas Intermediate crude gained 70 cents, or 0.8 per cent, to trade at $86.46 a barrel.

The latest advance followed strong gains in the previous session, when Brent settled 2.7 per cent higher after touching its strongest level since August 25, while WTI climbed 2.8 per cent to its highest point since August 21.

Market sentiment was boosted after U.S. President Donald Trump warned of additional military action against Iran following a fresh exchange of direct attacks between the two countries on Sunday.

The renewed confrontation marked a shift from weeks of mainly economic tensions, raising fears of a broader conflict that could threaten energy supplies.

The Chief Market Analyst at KCM, Tim Waterer, said the escalation had revived concerns over possible Iranian retaliation and the security of key energy infrastructure.

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“These developments bring the potential for Iranian retaliation back into focus. That raises the risk of damage to energy facilities around the Gulf and increases uncertainty over shipping through the Strait of Hormuz, both of which are supporting higher crude prices,” he told Reuters.

Shipping activity through the Strait of Hormuz also remained subdued. Data from Kpler showed that only five visible commodity vessels transited the strategic waterway on Monday, well below the 10-day average of about 14 vessels. None of the ships recorded were liquid tankers.

Diplomatic efforts led by Qatar and Oman to negotiate the reopening of the Strait of Hormuz have yet to produce a breakthrough.

The vital shipping lane, which carried about one-fifth of global oil supplies before the conflict erupted in late February, was closed by Iran after joint U.S. and Israeli strikes on the country on February 28. The prolonged disruption has continued to fuel concerns about global energy security and underpin crude prices.