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Crude Oil Surges as US, Iran Tensions Escalate; Brent Tops $106 Amid Supply Concerns
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CNBC TV18•29-09-2026, 07:10
Crude Oil Surges as US, Iran Tensions Escalate; Brent Tops $106 Amid Supply Concerns
- •Crude oil prices rose for a second day due to stalled US-Iran negotiations and strong demand, despite renewed Saudi oil flows.
- •Brent crude surpassed $106 per barrel, while West Texas Intermediate approached $94.
- •Iranian officials are skeptical of a US agreement before November's midterm elections, following Trump's rejection of a Strait of Hormuz traffic proposal.
- •Saudi Arabia has restored about 50% of oil flows through its East-West pipeline after drone attacks, reaching 3.5 million barrels daily.
- •Crude oil is set for a third monthly gain, driven by US-Iran tensions, Saudi pipeline disruptions, and potential US diesel export limits.
Key Questions Answered
Brent crude advanced past $106 per barrel following gains in the prior trading session, while West Texas Intermediate moved toward $94 per barrel.
Saudi Arabia has reestablished approximately 50% of petroleum flows through its transcontinental East-West pipeline, reaching a minimum of 3.5 million barrels daily after early-month drone attacks.
Brent's prompt spread has expanded to exceed $7 per barrel, creating a backwardation configuration that signals constrained market conditions.
