- Global crude oil prices rose for the third straight week, hitting multi-week highs on Sept 9
- Brent crude futures increased 2.17% to $100 per barrel, WTI reached $94.41 per barrel
- Saudi energy facilities were attacked by Iran-backed Houthis, halting some operations and wounding 73
Oil Prices On September 9: Global crude oil prices hit multi-week highs on Wednesday, gaining for the third straight week after Iran-backed Houthis attacked Saudi energy facilities and Tehran threatened the US with 'economic warfare'. Brent crude futures last rose 2.17% to $100 per barrel. The US West Texas Intermediate crude was at $94.19 per barrel, up 1.16%.
Brent crude earlier rose as much as $100.19 per barrel, its highest since July 24, while WTI reached $94.60 per barrel, its highest since June 8. That kept both crude benchmarks in technically overbought territory. The Brent crude benchmark has risen 10% so far in September and nearly 60% year-to-date.
Operations at some energy facilities in Saudi Arabia, the world's top oil exporter, were halted on Tuesday following attacks by Yemen's Iran-aligned Houthis that wounded 73 people, in what Saudi authorities called a dangerous escalation. Also, Iran threatened US with "economic warfare" and said it fired an advanced missile at US warships, underscoring the risks of further escalation in the war only days after both sides traded blows again.
Middle-East Tensions Spike Oil Prices
Iran said negotiations with Oman are in their final stages, while the two countries had already agreed on a framework for a temporary navigational corridor in August. The framework also includes plans for mine clearance and further talks on a permanent navigation arrangement. However, the proposed corridor does not necessarily mean a full reopening of the waterway. Iran has previously insisted that vessels using the route would remain subject to its approval and surveillance.
On Saturday, US forces had struck three Iranian oil tankers, including one near Kharg Island, Iran's main oil export hub, according to US Central Command. The attacks followed strikes by Iran's Revolutionary Guards on US warships operating in the region. Shipping traffic through the Strait of Hormuz also slowed at the start of this week, after Iran threatened on Monday to retaliate for any new US attacks. The Strait of Hormuz handled about one-fifth of global daily oil and liquefied natural gas supplies before the conflict began in late February.
Crude Oil Outlook
Despite the risks, some oil continues to move through Hormuz. Macquarie estimates roughly seven million barrels a day of crude and refined products are currently crossing the Strait, versus about 20 million barrels a day before the war. Goldman Sachs raised its Brent and WTI price forecasts by $5 to $85 and $80, respectively, for December 2026 and to $80 and $75, respectively, for 2027, reflecting its new assumption that Middle East shipping disruptions will continue into 2027.
Brent has risen more than 30% since the conflict began, although it remains well below the roughly $126 peak reached earlier in the year. Refined products, particularly diesel, have seen even sharper gains as disruptions from the Middle East combine with tightness linked to the Russia-Ukraine war. In the product market, global diesel supply will remain tight due to a lack of spare refining capacity, Russia's ban on exports and the approach of peak winter demand, senior industry executives said on Tuesday.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.