Brent crude futures topped $100 a barrel for the first time since July as US strikes on Iranian oil tankers and renewed attacks on Saudi energy infrastructure and a US base in Jordan suggested to UBS energy specialist Dominic Ellis that a "US-Iran off-ramp remains elusive."
Ellis adds more color on the overnight Gulf developments and response in the crude oil market:
Brent topped $100/bbl as the US and Iran continue to trade strikes around the Strait of Hormuz.
The US says it has destroyed multiple Iranian vessels (including 5 on Sept. 8) in response to Iranian attacks, and says it will respond to each subsequent Iranian hit (actual or attempted) by destroying another Iranian tanker.
CENTCOM forces destroyed five Iranian crude oil carriers, Sept. 8, after the Islamic Revolutionary Guard Corps (IRGC) targeted a U.S. Navy warship with ballistic missiles twice over the past two days. The U.S. warship successfully evaded the attempted Iranian attacks and… pic.twitter.com/Gi8a2tloN1
— U.S. Central Command (@CENTCOM) September 8, 2026
Iran hit a US base in Jordan, and has stepped up attacks on the US' regional allies, with Saudi Arabia's energy infrastructure under particular pressure.
Some investors have shown signs of wanting to fade the rally in oil and related equities, but the change in tone from all concerned makes it seem less likely (if not impossible) that we will see a return to the de-escalation narrative that has historically triggered a drop in oil and profit-taking in equities.
