US-Iran Tensions Send Oil Prices Soaring Above $90
Oil prices rose for the second straight day on September 1 amid renewed tensions between the US and Iran near the Strait of Hormuz. The conflict pushed refined-product prices up even faster than crude prices, with diesel among the hardest hit. Brent crude jumped above $91 a barrel, while West Texas Intermediate held above $86 after a 2.8% gain on Monday.
The US-Iran clashes stoked fears of extended disruption to energy shipments through the Strait of Hormuz, which has been a major concern for the global oil market. The ongoing war between Russia and Ukraine also contributed to the price increase. Despite the danger, oil exports continued to move through the strait, with many tankers switching off their transponders to avoid being tracked.
US President Donald Trump played down suggestions that the war was straining US military resources, calling it a 'little war' in remarks on August 31. However, he also stated that the US would hit back against any strikes on American forces, raising fears of further escalation in the region.