US-Iran Conflict Drives Oil Prices to Near $97 as Tensions Escalate
Oil prices surged to their highest level in months on Wednesday, September 2, as tensions between the US and Iran escalated. The Brent crude price rose near $97 a barrel, building on Tuesday's 4.6% surge, while West Texas Intermediate (WTI) hovered around $91. This marks the third consecutive day of oil price increases.
The conflict began after US President Donald Trump stated that American forces had acted in response to an Iranian attempt to lay mines in the Strait of Hormuz and a strike on a US base. Iran retaliated by striking US military bases in Jordan, Bahrain, and Kuwait, with the Islamic Revolutionary Guard Corps claiming it had strengthened its grip on the waterway.
US Treasury Secretary Scott Bessent said that Iran's economy was entering an 'acceleration phase' of financial collapse, citing the 17 million barrels of crude left Hormuz on Monday as evidence. This claim contradicts Iran's assertion that it controls the Strait.