Oil rises past $100 a barrel after the latest wave of Middle East
attacks
[September 09, 2026] By
CATHY BUSSEWITZ
NEW YORK (AP) — The price of oil surpassed $100 a barrel for the first
time in almost six weeks after attacks on oil facilities and ships in
the Middle East threatened to debilitate an already weakened supply
chain.
The most heavily traded contract for a barrel of Brent crude, the
international standard, settled at $97.89 before jumping 2.4% to $100.29
early Wednesday.
U.S. benchmark crude gained 1.9% to $94.77 a barrel.
When oil prices spike, prices of gasoline, diesel and jet fuel also
rise. That can increase the cost of traveling and of goods that must be
transported quickly like fresh food or shipped long distances like
furniture and appliances.
Markets reacted after the U.S. military reported striking five Iranian
tankers in response to attempted missile attacks on a Navy warship and
after attacks by an Iranian-backed Houthi rebel group ignited fires at
oil facilities in Saudi Arabia.
Crude oil prices shot up after Israel and the United States initiated a
war with Iran, and they have fluctuated a great deal during the more
than six months since then. The fighting has halted most shipping
through the Strait of Hormuz, a narrow waterway through which a fifth of
the world’s oil supply passed before the war began.
Brent increased from about $70 to $100 a barrel for much of March, April
and May. In July, prices swung between $72 and $102 again, reflecting
rising and falling hopes that the U.S. and Iran would agree on a plan
that would allow stranded tankers to move oil out of the Persian Gulf
safely.
“In our view, reaching a durable deal before the U.S. midterm elections
is increasingly unlikely, and it could remain elusive even beyond that,”
Bank of America analysts said in a Tuesday research note.
The analysts increased their oil price forecast for the second half of
the year to $83 a barrel “in light of more persistent disruptions to
Hormuz,” but said they still expected shipping through the strait to
gradually pick up. If attacks keep a chokehold on traffic, prices could
reach $95-$120 a barrel, while damage to major energy infrastructure
could produce spikes of up to $150 a barrel, the analysts wrote.
[to top of second column] |
 Negotiations over a preliminary deal
between the U.S. and Iran to end the conflict broke down over
control of the Strait of Hormuz. Iran insists it has the right to
set the terms and charge fees for ships traveling through the
waterway off its coast. The U.S. wants passage to remain free, and
has used a Navy blockade to block Iran’s ports and oil tankers.
Recent stepped-up attacks by Yemen’s Houthis could constrain global
oil supplies even more because they targeted an alternative shipping
route that Saudi Arabia has relied on to transport oil during the
war.
Higher energy costs have weighed on consumers, businesses and
economies around the world this year, more so outside of the U.S.
Refinery outages in Russia, reduced refining activity elsewhere, and
sharply declining inventories have pushed diesel and gasoline prices
toward record highs, according to a research note Monday from Bank
of America.
The effects on American consumers still are a concern for President
Donald Trump and the Republican Party as November midterm elections
approach.
A gallon of regular gasoline averaged $4.15 in the U.S. on Tuesday,
up 26% from a year ago, according to motor club AAA. Diesel, at
$5.90 a gallon, cost 59% more than the same day a year earlier.
Elevated oil prices also pushed up the cost of jet fuel, one of the
global airline industry’s largest expenses. U.S. and international
carriers have responded by cutting flights and raising fares and
fees.
___
AP Business Writer Rio Yamat contributed from Las Vegas.
All contents © copyright 2026 Associated Press. All rights reserved
 |
