Oil prices hold near $97 as US-Iran conflict and Hormuz disruptions keep geopolitical premium high

Oil prices were mixed early on Monday (September 7), with global benchmark Brent crude holding near $97 a barrel as markets continued to assess the impact of the U.S.-Iran conflict and disruptions around the Strait of Hormuz.

As of 8:28 am Tokyo time on Sept. 7, the market snapshot showed Brent crude up 0.43% to $96.69 , WTI Crude up 0.60% to $92.03, and Murban crude at $103.30, down -1.36%.

Natural gas was down 1.5% to $2.929.

The latest moves come after oil posted its strongest weekly gain since July.

Brent ended last week at $96.28 a barrel, up 7.6%, while U.S. West Texas Intermediate rose nearly 10% to $91.48, as renewed US-Iran fighting heightened concerns about energy supplies.

Hormuz remains the market's biggest worry

The Strait of Hormuz remains at the centre of the oil market's risk calculation. The waterway normally handles a huge share of global oil shipments, but tanker traffic has been severely disrupted amid the conflict.

Reuters reported last week that only four vessels crossed the strait during one period, compared with a 10-day average of 13, although US officials said as many as 17 million barrels had transited on one day.

The conflicting signals illustrate the central problem facing traders: the market has not completely lost physical supplies, but shipping remains unpredictable.

That uncertainty is keeping a geopolitical premium embedded in crude prices.

Brent remains the key global indicator

At $96.69, Brent was trading about $4.66 a barrel above WTI, reflecting the greater exposure of international crude prices to Middle Eastern supply and shipping risks.

Brent had already climbed above $96 last week after the latest escalation, while traders weighed the possibility of prolonged disruptions through Hormuz. Reuters said the market remained vulnerable to further price increases if fighting intensifies.

The premium could widen further if shipping restrictions become more severe or if attacks damage additional energy infrastructure.