WTI Crude Oil 7% Higher

Crude oil climbed toward $103 per barrel on Friday and was on track to gain more than 12% for the week, marking its biggest weekly increase since mid-July as the escalating conflict between the US and Iran fueled concerns over prolonged disruptions to global energy supplies. Top US officials reportedly warned President Donald Trump that the war could continue through the remainder of his term, which ends in January 2029. Meanwhile, Iranian leaders are reportedly determined to continue fighting despite mounting economic costs, viewing the conflict as an existential threat. They also claim that Tehran has managed to rebuild its missile capabilities and could intensify attacks on US and Gulf assets if Washington escalates its own strikes. Fighting has intensified over the past two weeks, with the US targeting Iranian oil tankers while Iran launched missiles at US warships and tankers in the Persian Gulf, as well as American assets in neighboring countries.

Crude oil rose past $103 a barrel on Thursday, its highest level since May 19th, as escalating tensions in the Middle East raised fears of prolonged disruptions to global energy supplies. Top White House advisers reportedly discussed with President Donald Trump the possibility that the Iran war could drag on past Inauguration Day in January 2029. Iran’s Houthi allies in Yemen struck several energy facilities in Saudi Arabia this week, raising concerns that the conflict was broadening. Saudi Arabia’s crude oil production fell sharply in August 2026, dropping by around 1.9 million barrels a day. Iran reported strikes on US warships and tankers in the Persian Gulf, while the US said it had hit 10 Iranian tankers. Adding to upward pressure on prices, oil tanker rates have jumped to record highs, while US crude inventories fell by 300,000 barrels in the week ended September 4th. In contrast, the EIA raised its forecast for US crude oil production in 2027 to 14.3 million barrels per day.

Crude oil rose above $100 a barrel on Thursday, reaching its highest level since May 19, as escalating tensions in the Middle East raised fears of prolonged disruption to global energy supplies. Iran signalled it will continue retaliatory strikes if US attacks persist, while Iran-backed Houthi forces are targeting Saudi assets and threatening shipping routes. Saudi Arabia’s crude oil production fell sharply in August 2026, dropping by around 1.9 million barrels a day to 6.238 million barrels a day, its lowest level since 1990. The deteriorating backdrop from the Middle East dims expectations that supply from the region could be normalized as Asian economies are forced to re-enter the energy market. China imported 8.93 bpd of crude oil in August, a 6.2% increase from July, after its reliance on inventory since the start of the conflict shielded the global economy from a deeper energy shortage due to blockaded tankers in the Persian Gulf.