US-Iran Tensions Escalate Again as Brent Crude Nears $100

TradingKey - As of early Asian trading on September 9, international oil prices continued to move higher, with Brent crude (UKOIL) rising to an intraday high of $99.67, just shy of the $100 mark; WTI crude (USOIL) peaking at $94.78. Brent crude prices have accumulated a gain of over 9% in September, mainly driven by the further escalation of the US-Iran military conflict and rising Middle East oil supply risks.

Brent crude price daily chart, Source: TradingView

According to the latest reports, Iran's Islamic Revolutionary Guard Corps stated that it used ballistic missiles to strike two US destroyers and targeted a US military base near Al Azraq in Jordan, in retaliation for US attacks on Iranian oil tankers. Jordanian officials stated that their air defense systems intercepted 18 out of 20 ballistic missiles fired from Iran, with no casualties reported so far.

Meanwhile, US Central Command stated that US forces destroyed five Iranian crude oil tankers on September 8, calling the action a response to Iran's prior attempt to attack US warships. US Secretary of State Rubio warned that if Iran continues to attack US Navy vessels, the US will continue to strike Iranian oil tankers.

At the same time, the conflict has further spread to Saudi Arabia. Yemen's Houthi militants launched missile and drone attacks on several cities in southern Saudi Arabia and claimed strikes on Saudi Aramco energy facilities in Abha, Najran, and Jazan. Saudi officials stated that the attacks injured 73 people, causing fires at some energy facilities and forcing them to suspend operations.

For the market, the continuously escalating conflict is impacting Middle East oil shipments. Data shows that crude oil transport through the Strait of Hormuz has dropped from approximately 8 million to 9 million barrels per day in late August to less than 2 million barrels per day.