Brent Tops $100 bbl as U.S., Iran Target Ships on Hormuz


   
Barani Krishnan
DTN Refined Fuels Market Reporter

   SECAUCUS, NJ (DTN) -- Crude oil futures rallied 3% or more Wednesday (9/9), 
with Brent breaching $100 bbl the first time in seven weeks, as Tehran said it 
had targeted ships near the Strait of Hormuz, expanding the U.S. strategy of 
striking at commercial Iranian vessels in the sharply escalating Middle East 
war.

   NYMEX WTI crude for October delivery rose $3.02, or 3.25%, to settle at 
$96.05 bbl, after hitting a more than three-month high at $96.82.

   ICE Brent for November delivery moved up $4.21, or 4.34%, to settle at 
$101.21 bbl after running up to $101.58 bbl, its highest since a mid-July peak 
of $102.00.

   Downstream, NYMEX ULSD for October delivery climbed $0.2332, or 5.10%, to 
finish at $4.8010 gallon. RBOB for October retreated $0.0419, or 1.29%, to end 
the session at $3.2106 gallon.

   By 3:31 p.m. ET, the U.S. dollar index gained 2.8 points to 98.810 against a 
basket of currencies.

   The rally in crude futures came as the Energy Information Administration 
(EIA) raised its Brent and WTI forecasts for 2026 in its Short-Term Energy 
Outlook (STEO), citing supply constraints.

   The EIA expects the spot price of global crude benchmark Brent to average 
$91 bbl in 2026, up from the $86.67 bbl it projected for August. WTI is 
forecast to average $84.65 bbl in 2026, up significantly from the $65.40 bbl 
average recorded for 2025.

   Supply tightness stems from ongoing transit bottlenecks in the Strait of 
Hormuz, where maritime threats have severely restricted Persian Gulf crude 
exports and forced regional producers to shut upstream production as storage 
fills.

   Iranian forces said Wednesday they had fired upon 10 vessels, including U.S. 
warships, that had breached a restricted zone declared by its authorities. 
Tehran said it also launched a retaliatory ballistic missile barrage directed 
at a U.S. military installation located in eastern Jordan.

   The U.S. Central Command denied the Iranian claim that U.S. warships were 
struck.

   Washington shifted its strategy in the Middle East conflict into outright 
economic warfare in recent days by striking at Iranian oil tankers to impose 
direct economic costs on Tehran. U.S. forces commander Admiral Brad Cooper 
stated the military will continue targeting Iran's commercial fleet whenever 
Tehran's forces threaten U.S. navy vessels.

   The offensive comes on top of retaliatory Iranian ballistic missile strikes 
on U.S. bases in Jordan and threats of a total shipping exclusion zone. 
Meanwhile, Houthi attacks on Saudi refineries on Tuesday further constricted 
globally limited processing capacity, keeping supply fears elevated across 
energy markets.

   Persian Gulf crude flows remain severely constrained, with transit through 
the Strait of Hormuz operating at roughly 40% of pre-war levels via 
U.S.-protected naval corridors and rerouted pipelines. However, significant 
demand destruction across major import markets continues to cap broader upside 
gains, as six months of elevated energy prices heavily weigh on global economic 
growth.

   China's Sinopec projected domestic fuel consumption to drop steeply this 
year, forecasting annual demand declines of over 8% for gasoline and 11% for 
diesel.

   Market participants are also focused on the Energy Information 
Administration's holiday-delayed inventory report, now due on Thursday 
(September 10) at 11:00 a.m. ET, to assess domestic product supplied figures 
and refinery throughput rates. The American Petroleum Institute will issue a 
preliminary reading of U.S. petroleum stockpiles at 4:30 p.m. ET on Wednesday.




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