Oil Heads for 6% Weekly Surge as Renewed US-Iran Fighting Shakes Global Energy Markets

Global oil markets are facing another period of intense volatility after renewed military exchanges between the United States and Iran pushed crude toward its strongest weekly gain since mid-July.

Brent crude was on course for a weekly increase of approximately 6.1%, while US West Texas Intermediate had risen about 8.3% for the week, according to Reuters market data on Friday. The price increases followed renewed US-Iran hostilities and continuing uncertainty surrounding the Strait of Hormuz.

The disruption is no longer confined to crude oil. Average US diesel prices have reached record levels, increasing concern that higher energy costs could feed into inflation and borrowing costs across the wider economy.

Diesel is particularly important because it powers much of the transport, logistics, construction and agricultural economy. Sustained increases therefore have the potential to filter through into the prices consumers eventually pay for goods.

The Strait of Hormuz remains at the centre of the crisis. Only four commodity vessels were observed transiting the strait on Thursday, compared with a 10-day average of about 15, according to preliminary Kpler shipping data cited by Reuters.

Before the Iran war began in February, around 125 large commercial vessels passed through the strait each day, carrying a substantial share of the world's crude oil and liquefied natural gas.

The result is a geopolitical confrontation with consequences reaching far beyond the Middle East.

If energy prices remain elevated, governments and central banks may face a renewed inflation challenge just as households and businesses are already dealing with high borrowing costs.

Source: Reuters Energy, 4 September 2026.