Oil gains as US attacks on Iranian ships raise escalation risks

OIL climbed after the US attacked Iranian tankers and Teheran declared a new restricted zone outside of the Strait of Hormuz, raising concerns about prolonged disruptions to energy flows through the waterway.

Brent gained as much as 0.8 per cent to trade near US$97 a barrel at the open, while West Texas Intermediate was around US$92. The US said it launched strikes against three Iranian oil tankers over the Sep 5-6 weekend, destroying one, in retaliation for attacks on American Navy warships with ballistic missiles.

In response, Iran’s top security official said a new restricted zone outside of Hormuz will be declared in the coming days, beginning at the US Navy blockade line and extending into parts of the Persian Gulf, Iran’s Press TV reported. Iran also said it targeted three tankers, but there was no independent corroboration.

Crude surged in the week ended Sep 6 after hostilities flared between the US and Iran after a period of relative calm. Brent crude is up almost 60 per cent in 2026, with refined products such as diesel seeing even steeper gains due to the Middle East conflict and the Russia-Iran war.

US Energy Secretary Chris Wright said there will not be any let-up in the US naval presence, which includes the blockade to stymie Iranian oil exports as well as helping to ensure safe passage for other commercial ships through the strait. Wright recently said millions of barrels were exiting Hormuz daily. BLOOMBERG