BRENT crude held above US$97 a barrel on Tuesday, hovering at a six-week high as renewed US-Iran fighting and mounting tensions over the Strait of Hormuz fuelled fears of further disruption to Middle East energy supplies.
Oil prices surged nearly 10% last week as renewed hostilities between the United States and Iran heightened concerns over the security of the strategic waterway, through which millions of barrels of crude and refined products pass each day.
Markets were also weighing Iran’s announcement that an agreement with Oman to manage shipping through the Strait of Hormuz was nearing completion, raising concerns over Tehran’s growing influence over the vital energy corridor.
Attention was meanwhile focused on Washington’s possible response after US forces struck Iranian oil tankers in the strait over the weekend.
Both sides intensified attacks around Hormuz, targeting ships and military vessels, while Saudi Aramco facilities in Jazan near the Red Sea were attacked again on Monday. Damage from the latest attack was reported to be limited.
Despite the heightened tensions, oil continues to flow through the Persian Gulf, with roughly seven million barrels a day of crude and refined products reportedly passing through the Strait of Hormuz.
The waterway is a critical route for global energy supplies, and any prolonged disruption could put further upward pressure on oil prices.
The US dollar index, meanwhile, held around 99 on Monday after recovering slightly in the previous session, supported by stronger-than-expected US employment data that reinforced expectations of a possible Federal Reserve interest rate hike this month.
US non-farm payrolls rose by 162,000 in August, following a revised increase of 23,000 in July and comfortably exceeding economists’ forecast of a 56,000 gain.
The unemployment rate remained unchanged at 4.1%, while annual wage growth slowed to 3.1%, although the moderation was less pronounced than markets had expected.
Investors subsequently raised the probability of a September Fed rate hike to about 60%, from roughly 50% before the employment report.
Markets are now awaiting US inflation data due this week for further clues on the Federal Reserve’s monetary policy outlook.
The dollar also benefited from safe-haven demand as the United States and Iran exchanged strikes on vessels over the weekend, adding to concerns over geopolitical and energy-market stability. - September 8, 2026
