Brent crude oil prices climbed to $107 per barrel on September 10, the highest since May 25. The sharp rally was driven by renewed conflict between Iran and the United States, Saudi Arabia’s steep production cut, and stronger demand from China. Traders fear prolonged supply disruptions could push inflation higher across global energy markets.
At 9 pm IST, Brent futures were up by 4.5%. The escalation of fighting in the Middle East, including the largest shipping attacks in six months, has revived fears of shortages. Saudi Arabia’s production fell to 6.2 million barrels per day in August, the lowest this year and 23% below July levels, after Houthi threats disrupted exports. China, the world’s biggest crude importer, has increased purchases, adding momentum to the rally. Analysts caution that sustained Chinese buying could lift prices further, while any slowdown may ease gains.
US President Donald Trump said the war may not end until after the November midterm elections, delaying hopes of fuel price relief. Brent has already risen 30% since early August as ceasefire talks collapsed. Rising oil prices are stoking inflation risks, with natural gas and diesel also surging. The dated Brent benchmark has remained above $100 since September 3, highlighting tight physical markets.
