Oil prices are on course to close the week with their largest weekly gain since July, as renewed hostilities between the United States and Iran leave investors increasingly anxious about energy flows through the Strait of Hormuz. US Vice President JD Vance has ruled out any negotiations between the two countries unless Tehran halts its attacks on vessels transiting the waterway.
In morning trading, Brent crude, the European benchmark, remained in positive territory though with modest gains of 0.08%, trading at US$95.59 per barrel and on track to post a weekly advance of more than 7%. West Texas Intermediate (WTI), the US crude benchmark, rose 0.21% to US$91.49 per barrel, while natural gas traded in Amsterdam gained 0.6% to €72.24 per megawatt-hour.
This week was defined by the resurgence of hostilities in the Middle East. The United States launched strikes against an Iranian island in the Strait of Hormuz, alleging that Tehran was preparing to use missile launchers to lay new mines in the waterway. The Islamic Republic responded with attacks on vessels and US military bases in neighbouring countries, prompting retaliatory action from Washington. Israel, meanwhile, stated it was prepared to resume combat operations if necessary.
Vance sought to play down the scale of the conflict, telling the US Congress that he would not characterise it as a war, given that major combat operations had concluded a week earlier. Nevertheless, domestic discontent continued to mount, with Republican Congressman Pat Harrigan stating that the situation was, ‘very clearly, from a military standpoint, a stalemate’.
Against this volatile backdrop, oil markets are ‘repricing their vulnerability’, according to Priyanka Sachdeva, Head of Market Analytics at Phillip Nova, speaking to Bloomberg. ‘The risk premium can only be compressed for a certain period of time while the underlying security issue remains unresolved,’ she added.
Brent crude prices have now risen nearly 60% this year, following a period of sharp declines in which oil was weighed down by expectations of a global supply surplus. However, the rekindling of the Middle East conflict has reversed that trend, with refined products particularly affected — in large part due to the ongoing war between Russia and Ukraine. US retail diesel prices hit their highest level since mid-2022 this week.
Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/2026/09/04/mercados/commodities/petroleo-prepara-se-para-fechar-a-semana-com-o-maior-ganho-desde-julho/
