Oil Markets Hold Steady as US-Iran Conflict Intensifies

The recent exchange of fire between the US and Iran has had a tumultuous effect on oil trading, with prices fluctuating wildly. The most significant movement came on Wednesday, September 2, 2026, when Brent rose by $1.25 to $94.90 per barrel, while West Texas Intermediate (WTI) increased by 40 cents to $90.32.

Dennis Kissler, senior vice president of trading at BOK Financial, downplayed the impact of the conflict on oil supplies, stating that 'the market has absorbed the fact that workaround crude oil supplies can still make it to the market eventually.' This sentiment was echoed by EnergyNow Media, which noted that physical supply conditions may be improving despite a worsening military situation.

However, not all analysts share this view. Some warn of headwinds resulting from the conflict, particularly in terms of high jet fuel costs. Ryanair, Europe's largest low-fare airline and one of the most hedged airlines, cautioned that some of its less well-hedged competitors could struggle to survive this winter.

The Organization of the Petroleum Exporting Countries (OPEC) is set to meet on Sunday, October 1, where it is likely to leave its oil production policy unchanged. Despite recent efforts by member countries such as Saudi Arabia and Russia to raise their monthly production quotas, actual production has lagged due to disruptions in exports through the Hormuz.