Brent Crude Approaches $100 as Middle East Tensions Escalate
Crude oil prices continued their upward trend on Monday, September 7, as concerns about Middle East supply disruptions intensified due to renewed U.S.-Iran attacks around the Strait of Hormuz. The Brent crude price approached $98 a barrel, with West Texas Intermediate trading above $92. Tight diesel supplies and falling U.S. crude inventories also contributed to the rally.
The Brent crude price has been steadily rising since last week's gains, when it rose 7.6% and WTI advanced nearly 10%. The Strait of Hormuz has seen a significant decrease in tanker traffic, with an average of roughly 10 commodity vessels per day crossing the area over the past 10 days, the lowest rate since May.
The psychological $100 level is now the clearest nearby test for Brent crude. A sustained break above it would reinforce the bullish structure, while failure to clear that area could trigger profit-taking after the rapid September rally. Goldman Sachs warns of a more severe upside scenario if attacks on Middle East shipping intensify, with oil potentially reaching $120 a barrel under deeper disruption.