🇺🇸🇮🇷 US-Iran Conflict Escalates as Oil Surges Above $100

WASHINGTON/TEHRAN — The conflict between the United States and Iran has entered a more dangerous phase, with fresh attacks on commercial shipping sending international oil prices above $100 a barrel and raising fears of further disruption to global energy supplies. Brent crude, the international benchmark, settled at $101.21 a barrel on Wednesday, up 3.4%, while U.S. West Texas Intermediate (WTI) settled at $96.05. Early Thursday trading kept Brent above the $100 mark. The latest surge followed the U.S. military's destruction of five Iranian oil tankers and Iran's subsequent claim that it had attacked 10 vessels near the Strait of Hormuz. US Strikes Iranian Tankers U.S. Central Command said its forces destroyed five Iranian oil tankers after Iranian forces attempted to attack a U.S. warship with ballistic missiles. Washington said the Iranian attacks failed and that no U.S. Navy warship was hit. Iran, however, has disputed the U.S. account and announced retaliatory military actions. The United States has described the tankers as part of an Iranian oil-smuggling network allegedly connected to the Islamic Revolutionary Guard Corps (IRGC). Iran subsequently said its forces had attacked 10 ships around the Strait of Hormuz, including U.S. vessels and oil tankers. The U.S. military has rejected Iranian claims that its warships were damaged. Strait of Hormuz at the Centre of the Crisis The Strait of Hormuz has become the central flashpoint in the confrontation. Before the conflict, roughly one-fifth of global oil and gas supplies passed through the strategic waterway. Traffic has now fallen dramatically, creating fears that prolonged disruption could further tighten global energy supplies. The situation has been compounded by attacks involving Iran-backed Houthi forces and Saudi energy infrastructure, threatening alternative routes for Middle Eastern oil exports. Oil Prices Raise Global Inflation Fears The return of Brent above $100 is creating concerns for governments, businesses and consumers around the world. Higher crude prices can translate into increased costs for petrol, diesel, aviation fuel, transportation, electricity, manufacturing and food production. In the United States, gasoline prices have already risen sharply, while diesel has reached record levels, according to Associated Press reporting. European and Asian financial markets have also come under pressure as investors assess the economic consequences of higher energy costs. Analysts warn that if the disruption continues, oil could rise substantially further. Some forecasts have pointed to $120 or more per barrel if the conflict causes more serious damage to energy infrastructure or significantly restricts Middle Eastern exports. Global Markets Feel the Impact The oil shock is already affecting financial markets. U.S. stocks fell on Wednesday, with the S&P 500, Dow Jones Industrial Average and Nasdaq all recording losses as investors reacted to higher crude prices and renewed inflation concerns. European and Asian markets have also experienced pressure. Central banks now face a difficult policy environment: persistent energy-price increases could push inflation higher just as policymakers are considering interest-rate decisions. A Crisis With Global Consequences The latest escalation has transformed the U.S.-Iran confrontation from a primarily regional military crisis into a major global energy and economic risk. With commercial shipping under increasing threat and oil flows through the Strait of Hormuz significantly reduced, markets are watching closely for any sign that the conflict will expand further or that Washington and Tehran could return to negotiations. For oil-importing countries, prolonged prices above $100 could mean higher fuel costs, increased transportation expenses and renewed inflationary pressure. Source: Reuters, Associated Press, CBS News and other international reports — September 9–10, 2026. Editorial Note: Claims concerning military attacks, damaged vessels and responsibility for individual incidents have been attributed to the respective parties or independent news agencies. The situation remains fluid, and some battlefield claims have not been independently verified.