Washington, DC – The sharp upward trend in global oil prices continued as the new trading week began on Monday, September 7, 2026. Brent crude, the international benchmark, traded near $97.50 a barrel in Asian markets, marking gains of more than 1 percent compared to the previous trading day. West Texas Intermediate (WTI) crude, the US benchmark, also saw a similar rise, reaching $92.37 a barrel. This represents a total increase of nearly 8 percent over the past week alone.
The repercussions of the US strikes and the declaration of an Iranian no-fly zone
This surge in global markets follows the US military attack over the weekend against three Iranian oil tankers. The attack, which destroyed one of the tankers, was a direct response to the Iranian Revolutionary Guard’s ballistic missile attacks on two US warships.
In an escalating response, senior Iranian security officials announced that Tehran would soon declare a new restricted zone outside the Strait of Hormuz, extending from the US naval blockade line to vital parts of the Persian Gulf. They indicated that ongoing talks with Oman could lead to agreements that would be formalized with the International Maritime Organization, despite the failure of previous rounds of negotiations. It is worth noting that Brent crude has risen by approximately 60 percent since the beginning of the year, driven by the ongoing conflict in the Middle East and the war in Russia and Ukraine.
Fears of a $100 scenario and market readiness
Commenting on the situation, Harris Khurshid, chief investment officer at Carobar Capital in Chicago, explained that the market has repriced a significant amount of geopolitical risk. He also warned that worsening shipping conditions or sustained disruptions to actual flows would make reaching the $100 mark a real and easily justifiable reality. For his part, US Energy Secretary Chris Wright affirmed that his country’s naval presence and its blockade aimed at restricting Iranian exports would not be scaled back. This is intended to ensure the safe passage of ships through the vital waterway through which millions of barrels of oil pass daily.
This escalation coincides with the gathering of senior traders and executives in the energy sector in Singapore to attend the Asia Pacific Petroleum Conference. At this conference, the implications of the Iranian war and shrinking stockpiles dominate the discussions. In light of these data, market data showed that hedge fund optimism regarding Brent and West Texas Intermediate crude oil rose to its highest levels since mid-year. Meanwhile, Dan Straweven, co-head of global commodities research at Goldman Sachs, warned of the possibility of Brent crude reaching $120 a barrel if the scope of attacks on maritime shipping traffic expands.
