Brent and WTI crude oil prices jumped to six-week highs on Monday after the U.S. and Iran traded military strikes over the weekend and Saudi Aramco facilities were reportedly hit in fresh attacks. The escalation pushed gasoline and diesel costs to record levels for the Labor Day weekend, while separate reports point to Strait of Hormuz disruptions and falling global inventories as added pressure on the market.
Oil prices rose to their highest level in six weeks on Monday as fighting between the U.S. and Iran intensified over the weekend. Brent crude climbed 1.5% to $97.73 a barrel, touching as high as $97.93 at one point, the highest since July 23. West Texas Intermediate gained 1.8% to $93.10, also its highest level since late July.
Aramco facility hit, threats traded
Saudi Aramco oil facilities were reportedly struck in fresh attacks on Monday, according to a Financial Times report cited by CNBC. Damage was still being assessed at the facility in Jizan, Saudi Arabia, home to a 400,000-barrel-per-day refinery, and it wasn't immediately clear who was responsible.
The strikes followed a weekend flare-up: the U.S. military hit three Iranian oil tankers on Saturday after Iran launched ballistic missiles at two Navy warships, U.S. Central Command said. CENTCOM described the ships as financing a network for Iran's Revolutionary Guard and its regional proxies. According to CNBC, Iranian Parliament Speaker Mohammad Baqer Qalibaf wrote on X: "Strike our assets and you get struck." His post responded to an earlier warning from Defense Secretary Pete Hegseth, who said the U.S. would destroy and sink Iranian oil tankers if Iran fires on U.S. vessels.
Supply risk was already building
The exchange of fire builds on tension that resumed about a week earlier after roughly a month of relative calm, in a conflict that passed its six-month mark in August. Reports also point to added pressure from disruptions at the Strait of Hormuz and a rebound in Chinese crude oil imports, according to a National Post report cited by Crypto Briefing. Global oil inventories have also been drawn down sharply since the conflict's onset, with cumulative stock draws reaching 410 million barrels between February and July, according to International Energy Agency data.
Elevated oil prices have pushed up the cost of other fuels: gasoline and diesel hit record highs for a Labor Day weekend as the conflict escalated.
Sources: CNBC, Crypto Briefing (snippet-based), Crypto Briefing (snippet-based)
Trading involves risk.
Risk Disclaimer
