Oil prices near US$100 as Middle East supply risks mount
Escalating US-Iran hostilities, attacks on Saudi energy infrastructure and threats to Gulf shipping heightens fears of prolonged disruptions to global oil supplies
Updated 8 hours ago · Published on 09 Sep 2026 9:21AM
Brent crude climbs above US$99 a barrel on Wednesday - September 9, 2026
BRENT crude surged above US$99 a barrel on Wednesday, approaching the key US$100 threshold as the escalating US-Iran conflict raised the risk of wider disruptions to oil production and shipments across the Middle East.
The latest rally followed US strikes on several Iranian crude tankers near Kharg Island, one of Iran’s main oil export hubs, intensifying concerns over the country’s ability to maintain exports.
A US official said the strikes were carried out in response to an attempted missile attack on a US warship.
Iran retaliated by launching ballistic missiles towards Jordan and warning vessels operating in the Persian Gulf, urging tanker crews near Kuwaiti and Bahraini ports to “immediately abandon their vessels”.
The conflict has also spread to Saudi Arabia, with Iran-backed Houthi militants attacking energy infrastructure in the south, including the 400,000-barrel-a-day Jazan refinery.
The attacks have heightened concerns that disruptions could extend beyond Iran to other major producers and critical shipping routes, particularly the Strait of Hormuz, through which a significant share of global oil supplies passes.
Asian refiners are already looking further afield for crude as uncertainty around Gulf supplies grows.
Stronger Chinese demand is pushing up prices for African, Canadian and Latin American crude as refiners compete for alternative supplies amid disruptions in the Strait of Hormuz.
The combination of supply risks and stronger demand has added to upward pressure on oil prices, with Brent now trading close to the psychologically important US$100 level.
The surge has also revived concerns over inflation, potentially complicating monetary policy decisions by major central banks.
Meanwhile, the US dollar index slipped to around 98.8 on Tuesday, declining for a second consecutive session as the yen strengthened on expectations of more aggressive monetary tightening by the Bank of Japan and continued unwinding of carry trades.
Investors are also awaiting US inflation data this week for further clues on the Federal Reserve’s interest-rate outlook ahead of its policy meeting next week.
Markets are pricing in roughly a 60% probability of a 25-basis-point Fed rate hike next week following stronger-than-expected jobs data released on Friday.
The European Central Bank is also expected to raise interest rates this week.
For Malaysia, the stronger oil prices come alongside a modest weakening of the ringgit against the US dollar.
The USD/MYR exchange rate rose to 4.0675 on Sept 9, up 0.15% from the previous session, although the ringgit remained 0.57% stronger over the past month and 3.50% higher over the past 12 months. - September 9, 2026
BRENT crude surged above US$99 a barrel on Wednesday, approaching the key US$100 threshold as the escalating US-Iran conflict raised the risk of wider disruptions to oil production and shipments across the Middle East.
The latest rally followed US strikes on several Iranian crude tankers near Kharg Island, one of Iran’s main oil export hubs, intensifying concerns over the country’s ability to maintain exports.
A US official said the strikes were carried out in response to an attempted missile attack on a US warship.
Iran retaliated by launching ballistic missiles towards Jordan and warning vessels operating in the Persian Gulf, urging tanker crews near Kuwaiti and Bahraini ports to “immediately abandon their vessels”.
The conflict has also spread to Saudi Arabia, with Iran-backed Houthi militants attacking energy infrastructure in the south, including the 400,000-barrel-a-day Jazan refinery.
The attacks have heightened concerns that disruptions could extend beyond Iran to other major producers and critical shipping routes, particularly the Strait of Hormuz, through which a significant share of global oil supplies passes.
Asian refiners are already looking further afield for crude as uncertainty around Gulf supplies grows.
Stronger Chinese demand is pushing up prices for African, Canadian and Latin American crude as refiners compete for alternative supplies amid disruptions in the Strait of Hormuz.
The combination of supply risks and stronger demand has added to upward pressure on oil prices, with Brent now trading close to the psychologically important US$100 level.
The surge has also revived concerns over inflation, potentially complicating monetary policy decisions by major central banks.
Meanwhile, the US dollar index slipped to around 98.8 on Tuesday, declining for a second consecutive session as the yen strengthened on expectations of more aggressive monetary tightening by the Bank of Japan and continued unwinding of carry trades.
Investors are also awaiting US inflation data this week for further clues on the Federal Reserve’s interest-rate outlook ahead of its policy meeting next week.
Markets are pricing in roughly a 60% probability of a 25-basis-point Fed rate hike next week following stronger-than-expected jobs data released on Friday.
The European Central Bank is also expected to raise interest rates this week.
For Malaysia, the stronger oil prices come alongside a modest weakening of the ringgit against the US dollar.
The USD/MYR exchange rate rose to 4.0675 on Sept 9, up 0.15% from the previous session, although the ringgit remained 0.57% stronger over the past month and 3.50% higher over the past 12 months. - September 9, 2026
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