Iran Threats Push Oil Prices to Six-Week High Amid Escalating Middle East Conflict

Oil prices rose to six-week highs on Monday (Sept 7) as Iran vowed to strike energy infrastructure across the Middle East in response to US attacks, escalating a conflict that has severely reduced oil supply from the region.

Brent crude futures climbed $1.03 or 1.1% to settle at $97.31 a barrel, while West Texas Intermediate (WTI) was up 1.3% at $92.65 a barrel by 1.45pm EDT.

The Iranian Parliament Speaker Mohammad Baqer Qalibaf said 'Strike our assets and you get struck' in response to US Defence Secretary Pete Hegseth's warning that Tehran's oil fleet is 'defenseless'. The war between the two countries has seen a sharp increase in attacks on oil tankers, with both sides trading strikes over the weekend.

OPEC+ kept its oil output policy unchanged for October at a meeting on Sunday, but Goldman Sachs predicted oil prices may rally as high as $120 a barrel if attacks on shipping rise. The UAE is building alternative routes for energy exports to avoid being 'held hostage' by the conflict.