Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials HomeCommoditiesEnergyOil & GasOil hits US$105 as Middle East flareup heightens supply worriesThe U.S. is trying to cripple Iran’s economy through a naval blockade that has slashed oil exportsAuthor of the article:Brent is up more than 70 per cent this year, although the benchmark remains well below its wartime peak of US$126 a barrel reached in April. Photo by Brandon Bell/Getty ImagesBrent oil spiked to US$105 a barrel as rising tensions in the Middle East heightened concerns over global supplies.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorThe crude benchmark extended a rally that saw futures jump to triple figures for the first time since July in the previous session. Renewed fighting over the past week has ended a period of relative calm, and the prospect of a lengthy conflict is fanning renewed fears of energy-driven inflation as prices for natural gas and diesel also surge.Iran signalled it has no intention of backing down in the face of an American naval blockade and will escalate its strikes if the United States continues attacking its territory. Meanwhile, Tehran-backed Houthis in Yemen are targeting Saudi Arabian assets, with the kingdom warning its crude production plunged last month to the lowest since 1990.In the latest development, the militants defeated Yemeni government forces in Mokha, on the Red Sea, better positioning the group to menace shipping in the Bab-el-Mandeb Strait, the New York Times reported, citing two Yemeni officials it didn’t name.Brent is up more than 70 per cent this year, although the benchmark remains well below its wartime peak of US$126 a barrel reached in April, in part due to some crude flowing out of the Persian Gulf.Still, gains have accelerated across the oil market in recent days. The Dated Brent physical market benchmark was priced at US$114 a barrel on Wednesday, as fresh buying from Asia tightens supplies. Those purchases are coming as drivers are paying more to fill up, with retail diesel prices in the U.S. nearing an unprecedented US$6 a gallon and European gas-oil futures approaching US$200 a barrel. U.S. gasoline prices at the pump hit a Labour Day record this week.President Donald Trump said the war would only end after the November midterm elections and that significant gasoline price relief would not come before then, signalling little prospect of a near-term de-escalation in the conflict and relief for consumers.“Rising oil prices will be a concern ahead of the midterms,” said Warren Patterson, head of commodities strategy at ING Groep NV. “In order to see prices moving significantly higher, we would need to see recent escalation feeding through to renewed disruptions in oil flows through the Strait of Hormuz.”The U.S. is trying to cripple Iran’s economy through a naval blockade that has slashed oil exports, alongside threats to penalize governments and companies that fail to sever ties with Tehran. The Iranian official acknowledged growing economic pain, but said the leadership believes it has little choice but to keep fighting until it is confident Washington will be too wary to attack again.White House advisers, including Vice President JD Vance, have privately raised with Trump the prospect that the war with Iran could drag on through the remainder of his term, the Wall Street Journal reported, citing U.S. officials. Such a scenario would strain U.S. military resources and heighten the risk of prolonged disruptions to Middle East energy supplies.A resurgence in Chinese buying has helped to tighten the global oil market, although the country’s smaller refiners are being squeezed by higher prices and may be forced to cut processing runs in the coming weeks, potentially curbing demand in the world’s biggest crude importer.U.S. Energy Secretary Chris Wright told Bloomberg that just under 11 million barrels a day of crude and oil products are moving through Hormuz. He also offered a more optimistic assessment than Trump on gasoline prices, saying they will move lower in the coming weeks as efforts to boost U.S. refining capacity gather pace.For now, U.S. diesel inventories are projected to fall this month to their lowest in more than two decades, according to the Energy Information Administration. Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.