Brent Drops 3.6% to $103.78 as Weekly Oil Gain Nears 10%
Updated
Updated · CNBC · Sep 11
Brent Drops 3.6% to $103.78 as Weekly Oil Gain Nears 10%
3 articles · Updated · CNBC · Sep 11
Summary
$103.78 Brent and $99.23 WTI both fell Friday, snapping five straight gains for Brent and an eight-day winning streak for U.S. crude after this week's surge above $100 a barrel.
Nearly 10% weekly gains still held because traders kept pricing in a prolonged Iran war, with worries over Red Sea shipping and Saudi exports after Houthi forces captured Yemen's port of Mokha near Bab el-Mandeb.
Saudi output falling to its lowest since 1990 added to supply fears, while a Wall Street Journal report said White House advisers had discussed with President Donald Trump the risk that the conflict could outlast his term.
PVM's Tamas Varga said Brent could revisit April's $126 peak as inventories keep drawing down, but argued any spike may fade as high prices destroy demand and renewables replace part of oil consumption.
With Saudi output hitting 1990 lows, could the structural oil deficit permanently reshape global supply chains and ignite a new inflation crisis?
If Middle East shipping disruptions become permanent, how will the massive global fertilizer shortage impact your daily grocery bills?
Could the eventual reopening of the Suez Canal paradoxically trigger a catastrophic shipping congestion crisis rather than fixing the supply chain?
2026 Oil Price Spike: Brent Tops $107 Amid Middle East Conflict and Global Supply Chain Chaos
Overview
In September 2026, the expiration of a U.S.-Iran truce reignited military conflict, leading to the closure of the Strait of Hormuz and a sharp drop in oil flows. This, combined with Houthi forces seizing key Red Sea chokepoints and attacking Saudi energy sites, created a double maritime crisis. As a result, shipping routes were disrupted, tanker rates soared, and Saudi oil production plunged. These supply shocks drove Brent crude prices above $107 per barrel, pushing up gasoline and diesel costs worldwide. The resulting inflation forced central banks like the ECB to raise interest rates, while the IEA revised its oil demand forecast downward, signaling a global economic slowdown.