Oil prices hit 6-week high amid renewed US-Iran attacks

Oil prices hit fresh six-week highs on Thursday, September 3, 2026, ​after new United States strikes on Iran and renewed Israeli threats against Tehran heightened concerns about ‌disruptions to Middle East supplies.

Brent crude futures were up $1.66, or 1.7%, at $97.29 a barrel by 1200 GMT, erasing earlier losses, while U.S. West Texas Intermediate crude futures rose $2.03, or 2.2%, to $93.04. Both contracts were heading for ​their fourth day of gains and hit six-week highs earlier in the session.

Iran’s health ​minister said 18 people were killed and 108 wounded in Tuesday night’s U.S. ⁠strikes across Iran. The Iranian Red Crescent said four people were killed and 67 wounded ​at a wedding ceremony near the coast of the Strait of Hormuz.

Three Iranian Army pilots were ​killed in the U.S. strikes, Tasnim news agency reported.

The latest attacks marked the most substantial exchange of fire between the U.S. and Iran since July, with the war now in its seventh month.

Israeli Defence ​Minister Israel Katz renewed warnings that Israel would “cripple” Iran’s military and civilian infrastructure, including energy facilities, ​if Tehran launched attacks against it.

Saxo Bank analyst Ole Hansen said Katz’s comments had helped fuel the latest ‌jump ⁠in oil prices.

Shipping data showed on Thursday that six commodity vessels transited the Strait of Hormuz on Wednesday, down from 11 a day earlier and well below the 10-day average of around 13.

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“The oil market remains tight, with oil inventories still declining globally translating in higher prices. Some support ​might have also come ​from ongoing tensions ⁠in the Middle East,” said UBS energy analyst Giovanni Staunovo.

Meanwhile, Iran added more ships to the list of vessels it deems non-compliant and subject to ​fines, confiscation or detention if they try to sail through the ​strait.

Elsewhere, Iraq increased ⁠its oil exports to around 2.34 million barrels per day in August from about 1.35 million bpd in July, two Iraqi energy officials said on Wednesday, with September exports also expected to ⁠increase as ​heavy discounts and Iranian approvals for Iraqi tankers to ​pass through Hormuz encouraged buyers.

In broader markets, traders have increased bets on a Federal Reserve interest rate hike this month.