Oil prices climbed to a six-week high on Monday as military tensions between the United States and Iran intensified, compounded by reports that Saudi Aramco infrastructure had been targeted in fresh attacks.
Brent crude, the global benchmark, rose 1.3% to $97.52 per barrel, briefly touching $97.93, marking its highest level since July 23. West Texas Intermediate (WTI), the U.S. benchmark, also gained 1.3% to reach $92.68, momentarily breaking above $93.
The price spike follows a significant escalation over the weekend, during which U.S. and Iranian forces exchanged fire. The U.S. Central Command (CENTCOM) reported that American military assets struck three Iranian oil tankers on Saturday. This response came after Iran launched ballistic missiles at two U.S. Navy warships.
CENTCOM stated that the targeted vessels are part of a “multibillion-dollar shadow network” believed to finance Iran’s Islamic Revolutionary Guard Corps and its regional proxies. In response, Iran’s Foreign Ministry condemned the attacks on commercial shipping as acts of “economic warfare” and war crimes.
Compounding market concerns, the Financial Times reported that Saudi Aramco facilities were hit in new strikes on Monday. The attack targeted a site in the city of Jizan, which houses a refinery with a capacity of 400,000 barrels per day. Assessments of the damage are ongoing, and responsibility for the assault has not yet been clearly established.
These developments mark a resumption of hostilities after approximately one month of relative calm. The broader conflict between the two nations surpassed the six-month mark in August.
The surge in crude prices has already begun to affect downstream fuel costs. Gasoline and diesel prices reached record highs over the recent Labor Day weekend, further raising concerns about energy affordability amid the geopolitical instability.
This volatility is exactly why I’m watching both oil futures and gold simultaneously — diversification matters.
CENTCOM’s shadow network framing doesn’t explain why commercial tankers keep getting hit. Something’s off.
The gasoline price impact is already hitting everyday Americans at the pump — this isn’t just geopolitics anymore.
$97.52 Brent feels like a lagging indicator. Once Jizan damage is confirmed, expect further spikes.
Iran calling this economic warfare is pretty much accurate, given the targeting of civilian infrastructure.
Saudi Aramco attacks are serious — a 400k barrel refinery down hurts the whole supply chain.