Oil Prices Soar as Middle East Tensions Escalate
Oil prices surged on September 14, 2026, as tensions in the Middle East escalated. Brent crude rose 2.6% to $107.37 per barrel, while U.S. futures fell due to concerns over artificial intelligence development and the impact of rising oil supplies.
The Houthis, an Iranian proxy, intensified their military campaign at a key energy transit point in the region, capturing strategic islands in the southern Red Sea and strengthening their control of a major maritime shipping route.
U.S.-Iran tensions remain high, with Saudi Arabia shutting down a major oil pipeline used to bypass the Strait of Hormuz after it was attacked. The capture of the islands of Greater and Lesser Hanish is the latest in the rebels' swift advance around the Bab el-Mandeb Strait.
The situation remains fluid, but ING commodities strategists Warren Patterson and Ewa Manthey noted that sizable volumes of oil have still been moving through the strait. Diesel prices continue to climb, reaching $6.23 per gallon, while gasoline prices average $4.32 per gallon.