Brent climbs past $100 as US-Iran clashes in Strait of Hormuz reignite global energy fears

A fresh wave of military escalations between the United States and Iran has sent shockwaves through energy markets, forcing crude prices above $100 a barrel as shipping through the vital Strait of Hormuz remains severely restricted.

On September 10, Brent crude climbed into triple digits for the first time since July, settling at $101.21 a barrel. US benchmark crude finished close behind at $96.05 a barrel, following attacks on oil facilities and ships in the Middle East that threatened further disruptions to an already constrained global supply.

The Indian crude basket hit $109 yesterday registering a 4-month-high.

The return to $100 oil intensifies economic anxiety, with analysts warning that a prolonged period of high fuel costs could trigger broader inflationary fallout.

The latest spike follows reported US military strikes targeting Iranian vessels in the Persian Gulf and Sea of Oman, which prompted immediate retaliatory missile attacks from Tehran against American positions in the region.

The Iranian Ministry of Foreign Affairs condemned the operations, labeling the strikes on commercial vessels an extension of a naval blockade and economic warfare. Tehran asserted its defensive response was justified under international law, warning that continued aggression threatens regional and global stability.

Energy analysts and federal agencies caution that the ongoing bottleneck in the Strait of Hormuz, a crucial maritime corridor handling roughly a fifth of world seaborne petroleum trade, will continue to strain global distribution.

New guidance from the US Energy Information Administration indicates that constrained tanker transits could leave millions of barrels of oil per day shut in through the end of the year.

Both Brent crude and West Texas Intermediate futures reacted sharply to the escalation, hitting multi-month highs as inventories drop faster than expected.

The persistent disruption along the passageway has heightened market volatility, forcing shipping operators into long diversions while insurers reclassify the waterway as a high-risk operational zone. Commercial traffic through the channel remains a fraction of normal capacity, leaving global supply chains and consumer fuel costs tied directly to the trajectory of the military standoff.

Trump on oil price jump

President Donald Trump acknowledged Wednesday that energy prices driven up by the conflict are unlikely to subside before the US midterm elections.

“Right after the election, oil prices are going to be tumbling downward,” Trump said. “I think it’s going to take a little bit longer than the midterm.”

Speaking to reporters before traveling to Dallas for the midterm Republican convention, Trump added that he expects Tehran to relent once the elections conclude.

While the administration initially signaled the war would last only a matter of weeks, the conflict has now stretched into its seventh month. The ongoing US-Israel military campaign against Iran continues to stifle Gulf oil movement through the Strait of Hormuz, leaving global markets bracing for prolonged turbulence.