Brent crude oil prices hit $100 a barrel on September 9, 2026, marking the first time since July, as escalating tensions in the Middle East and renewed Chinese oil buying propelled the global benchmark higher. US forces destroyed five Iranian tankers carrying crude oil in response to attempted missile attacks on a US Navy warship, further intensifying the conflict. Iran retaliated with strikes on a US-used base in Jordan and vessels near the Strait of Hormuz, with reports of explosions on Kharg Island.
Simultaneously, Houthi rebels in Yemen attacked Saudi energy facilities, setting oil sites ablaze and adding to supply risks. These events have created significant concern for global energy markets, especially for the White House and Republicans ahead of midterm elections, as consumers face higher gas prices, which reached $4.22 on Wednesday, the highest since early June.
The US benchmark, West Texas Intermediate Crude, also saw similar increases, trading around $95 a barrel. The ongoing conflict between the US and Iran, which began in February, has disrupted oil exports from the Middle East, with the Strait of Hormuz, a key waterway for a fifth of the world's oil supply, being throttled by Tehran. While the US military has managed to restore some shipping traffic, other trade routes remain affected.
In related news, tensions between the US and Canada escalated, with the US announcing import bans on Canadian alcohol, motorcycles, and dairy products from September 29, following Canada's retaliatory tariffs on US goods. Former President Donald Trump claimed on social media that oil prices would drop significantly if the US wins the war with Iran, potentially to as low as "two dollars a gallon."
Amidst these developments, the yen strengthened against the dollar, with USD/JPY moving from 154.40 to around 153.40 overnight, partly due to hawkish Bank of Japan bets and comments from US Treasury Secretary Bessent, who challenged traders to bet against him on the yen.
