8 September 2026 Punjab Khabarnama Bureau : Oil prices extended their gains on Tuesday as the risk of a prolonged Middle East conflict increased, raising concerns about disruptions to global crude supplies.
The latest rise came after Iran threatened retaliation against further US attacks on its assets, adding to uncertainty around oil flows through the Persian Gulf and the strategically important Strait of Hormuz.
Brent Crude Nears $100 a Barrel
Brent crude futures rose 49 cents, or 0.5%, to $97.49 a barrel by 0400 GMT, while US West Texas Intermediate (WTI) crude gained $1.44, or 1.6%, to $92.92 a barrel.
Brent had already reached its highest level since July 24 in the previous session as traders priced a larger geopolitical risk premium into crude.
Iran Threatens Retaliation
Iran has warned that energy infrastructure across the Gulf, including US oil and gas interests, could be vulnerable if Washington carries out further attacks.
The warnings follow a fresh escalation between the United States and Iran, increasing fears that military confrontation could continue for an extended period.
Strait of Hormuz at the Centre of Supply Concerns
The Strait of Hormuz remains the biggest immediate concern for global oil markets.
The waterway is a critical route for crude shipments from major Middle Eastern producers. Any prolonged disruption or threat to shipping could reduce the amount of oil reaching international markets and push prices higher.
Supply Flows Already Under Pressure
Oil shipments through the region have already been disrupted by the conflict.
According to industry estimates cited in recent reports, Middle East crude flows have fallen significantly from levels seen before the war, while traffic through the Strait of Hormuz has also dropped sharply following renewed hostilities.
Markets Brace for a Longer Disruption
Analysts warn that the latest escalation could keep Persian Gulf supplies constrained for months.
ANZ analysts said the conflict could result in continued supply restrictions through the end of 2026, with a full return to pre-war oil throughput potentially taking until late Q1 or early Q2 2027.
Oil Prices Could Stay Volatile
The uncertainty is creating a significant risk premium in crude prices.
DBS Bank analysts said the renewed US-Iran confrontation could change the market’s assessment of oil-related risks not only for the remainder of 2026 but potentially into 2027.
Impact on Global Economy
Higher crude prices can increase costs for transportation, manufacturing and energy-intensive industries.
If elevated oil prices persist, they could also complicate efforts by central banks to control inflation, particularly in economies heavily dependent on imported energy.
India Faces Higher Import Costs
India is particularly sensitive to movements in global crude prices because it imports a large share of its oil requirements.
India’s average crude import price recently crossed the $100-per-barrel mark for the first time in six weeks, reflecting the impact of rising geopolitical tensions and disruptions around the Strait of Hormuz.
Markets Closely Watch Further Escalation
For now, traders are closely monitoring whether the US-Iran confrontation intensifies further or moves towards negotiations.
Any additional attacks on oil infrastructure, tankers or shipping routes could push crude prices sharply higher, while signs of de-escalation could ease the geopolitical premium.