West Texas Intermediate (WTI) crude reclaimed the triple-digit level Thursday, surging as much as 6.7% to $102.48 per barrel -- its highest level since May. U.S. crude has now climbed more than 18% in September, extending its sharp advance as the conflict in the Middle East threatens global energy supplies. In fact, yesterday marked its longest daily win streak since September 2023.
Brent crude, the international benchmark, rose roughly 6% to $107.21 per barrel Thursday (earlier topping $108 briefly), also marking its highest level since May. The commodity has surged roughly 48% since the war in Iran began in late February. Since the start of 2026, both Brent and WTI prices have risen more than 75%, as persistent disruptions to key Middle Eastern shipping routes keep upward pressure on oil prices.
The rally has translated into outsized gains for the United States Oil Fund (USO), which also surged Thursday and is up 127.5% year to date. Oil majors have also benefited, with Exxon Mobil (XOM) up 37.6% in 2026 and Chevron (CVX) sporting a 39.9% year-to-date gain. CVX earlier overtook its record high with a new peak of $217.40.
The latest supply concerns center on the Strait of Hormuz and Red Sea. Shipping through the Strait of Hormuz, which handled roughly one-fifth of the world's oil supply before the war, has fallen to a fraction of its previous levels. Just 12 ships passed through the waterway Wednesday, according to Kpler data cited by The New York Times, compared with more than 130 per day before the war. Saudi Arabian oil exports also fell last month to their lowest level in at least 13 years.
Tensions escalated further Thursday following reports that the Iranian-backed Houthis captured a strategic port city in Yemen, strengthening their position near the Bab al-Mandab Strait. Saudi Arabia has relied on the Red Sea route to circumvent disruptions around the Strait of Hormuz, but attacks on tankers have complicated that alternative as well.
The surge in energy prices is also adding to inflation concerns ahead of next week's Federal Reserve meeting. U.S. gasoline prices rose to an average of roughly $4.28 per gallon Thursday, while diesel climbed to $5.98 per gallon. Meanwhile, the 10-year Treasury yield moved above 4.9%, its highest level since 2023, as investors weighed the possibility of persistently high inflation and interest rates.
