European Investor
03 Sep 2026, 14:24
Brent Crude Rises Toward $97 as U.S.-Iran Attacks and Trump Warnings Keep Supply Risks Elevated
Brent crude oil futures climbed 0.87% to $96.46 a barrel Thursday, extending a sharp recent advance as escalating U.S.-Iran hostilities and continued disruption around the Strait of Hormuz kept geopolitical risk firmly embedded in energy prices.
Oil initially traded below $95 before reversing sharply and briefly moving above $97 during the session. The rebound comes as the conflict continues to generate direct risks to Gulf energy infrastructure and shipping. Iran said it launched missile and drone attacks against U.S. bases in Kuwait and the United Arab Emirates early Thursday, adding another round of escalation to the recent U.S. attacks on Iran. (rferl*org)
President Donald Trump’s recent speeches and public warnings toward Iran have also reinforced the geopolitical risk premium. Trump has alternated between signaling willingness to negotiate and warning of further military action if Tehran does not meet U.S. demands, leaving traders reluctant to price in a durable de-escalation. The latest attacks show that the conflict remains capable of intensifying quickly.
The oil rally is also feeding directly into the broader U.S. inflation debate. Thursday’s ISM services prices index rose to 72.6 from 70.3, already signaling elevated cost pressures. Crude near $100 could further lift transportation and energy costs, complicating the Federal Reserve’s policy outlook even as labor-market indicators soften.
For Brent, the immediate direction is therefore likely to remain closely tied to developments around Iran and Hormuz. A further deterioration in shipping conditions or additional U.S. and Iranian attacks could push the geopolitical premium higher, while credible progress toward a ceasefire or restoration of normal tanker traffic would remove one of the strongest supports behind the recent oil rally.
Brent crude oil futures climbed 0.87% to $96.46 a barrel Thursday, extending a sharp recent advance as escalating U.S.-Iran hostilities and continued disruption around the Strait of Hormuz kept geopolitical risk firmly embedded in energy prices.
Oil initially traded below $95 before reversing sharply and briefly moving above $97 during the session. The rebound comes as the conflict continues to generate direct risks to Gulf energy infrastructure and shipping. Iran said it launched missile and drone attacks against U.S. bases in Kuwait and the United Arab Emirates early Thursday, adding another round of escalation to the recent U.S. attacks on Iran. (rferl*org)
President Donald Trump’s recent speeches and public warnings toward Iran have also reinforced the geopolitical risk premium. Trump has alternated between signaling willingness to negotiate and warning of further military action if Tehran does not meet U.S. demands, leaving traders reluctant to price in a durable de-escalation. The latest attacks show that the conflict remains capable of intensifying quickly.
The oil rally is also feeding directly into the broader U.S. inflation debate. Thursday’s ISM services prices index rose to 72.6 from 70.3, already signaling elevated cost pressures. Crude near $100 could further lift transportation and energy costs, complicating the Federal Reserve’s policy outlook even as labor-market indicators soften.
For Brent, the immediate direction is therefore likely to remain closely tied to developments around Iran and Hormuz. A further deterioration in shipping conditions or additional U.S. and Iranian attacks could push the geopolitical premium higher, while credible progress toward a ceasefire or restoration of normal tanker traffic would remove one of the strongest supports behind the recent oil rally.
