Oil prices top $100 as Iran war escalates
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The gist
Brent crude topped $100 a barrel Wednesday for the first time since July as the U.S.
U.S. gasoline hit $4.22 a gallon, up about 32% from a year ago.
Background
The U.S.-Iran conflict began in February and has essentially shut down traffic in the Strait of Hormuz, where a fifth of the world's oil supply passed before the war. The U.S. destroyed five Iranian tankers on Tuesday, and Iran-backed Houthi attacks on Saudi energy facilities this week set oil installations ablaze. Brent has risen by a quarter since early last month as hopes fade for a permanent resolution to the six-month-old conflict.
How it unfolded
- Feb 28, 2026The Iran war begins and Iran closes off the Strait of Hormuz, severely curtailing crude flows through the key waterway.
- Sep 8, 2026The U.S. destroys five Iranian tankers in a series of attacks between the two nations.
- Sep 9, 2026Brent crude tops $100 a barrel for the first time since July 24; U.S. stocks fall and average U.S. gasoline rises 7 cents overnight to $4.22 a gallon.
Who’s saying what
- Analysts
- Goldman Sachs has raised its projected chances that prices will increase beyond $120 per barrel, and a growing number of banks including Bank of America and HSBC have raised their crude price forecasts in recent days.
- Markets
- Stocks fell on Wall Street Wednesday, with the S&P 500 down 0.3% to 0.5%, the Dow Jones Industrial Average losing 311 to 407 points, and the Nasdaq composite falling 0.4% to 0.7%, as higher fuel prices cut into household budgets and raise shipping costs.
Still unverified
Reports of Houthi attacks on Saudi energy facilities setting oil installations ablaze come from a single Reuters account and have not been independently confirmed; the exact timing and scale of the damage remain unclear.