TLDR
- Brent crude hit $109.97 a barrel this week, its highest since early May, before easing slightly to around $107.86
- U.S. and Iranian forces carried out some of their worst attacks on shipping near the Strait of Hormuz
- Iran and Gulf states are set to meet in Oman on Monday to discuss a Hormuz shipping deal
- Yemen’s Houthi group seized the port city of Mokha, tightening its grip on the Red Sea
- Brent and WTI futures are both up over 11% for the week, the sharpest weekly gain since mid-July
Oil prices had a volatile week, swinging between sharp gains and a late pullback on Friday after reports emerged that Iran and Gulf states may be close to a deal on Hormuz shipping.
Brent crude rose as high as $109.97 a barrel, its highest level since early May. West Texas Intermediate also pushed past $103 earlier in the week. Both benchmarks posted weekly gains of around 11% to 13%, the biggest weekly jump since mid-July.
By Friday, Brent had eased back to around $107.86 and WTI to $102.28, after the Financial Times reported that Gulf foreign ministers plan to meet Iran’s top diplomat on Monday in the Omani city of Salalah.
The meeting is an Omani initiative and would be the first direct talks between Gulf and Iranian officials since the U.S.-Israeli offensive against Iran began in late February. Iran and Oman had already signaled in August that they were in early discussions over a commercial shipping deal for Hormuz.
The U.S. has largely opposed any such agreement and previously warned Gulf states against negotiating with Iran. Washington has also maintained its naval blockade against Iran throughout the conflict.
Hormuz Attacks Drive Prices Higher
Earlier in the week, oil soared past $100 a barrel after Iran said it attacked 10 ships near the Strait of Hormuz. The U.S. said it retaliated by sinking five Iranian tankers. The exchange marked some of the most intense fighting in months.
BREAKING: Saudi Crown Prince MBS called Trump twice on Thursday strongly urging him to launch US strikes on the Houthis as they closed in on the Bab el-Mandeb Strait and seized more than 3,000 sq. km, per two US officials.
Trump refused.
The request is a sharp reversal from…
— The Hormuz Letter (@HormuzLetter) September 11, 2026
ING commodity analysts said in a note that oil is “repricing both the duration and severity of the conflict,” adding that flows through the Strait of Hormuz remain “well below pre-war levels.”
IG analyst Tony Sycamore said that with Iran showing it is willing to extend the conflict, it is becoming increasingly likely that WTI crude will retest its early March high of $119.48.
Houthis Tighten Grip on Red Sea
Adding to supply concerns, Yemen’s Houthi group seized control of the Red Sea port city of Mokha. The UN Special Envoy for Yemen told the Security Council this week that the move gives the Houthis “a direct presence on the approaches to one of the world’s most vital straits.”
The Houthis have declared a naval blockade against Saudi Arabia and have been attacking ships in the Bab el-Mandeb Strait. On Friday, media reports said the group struck Saudi Arabia’s East-West oil pipeline, with six major fires reported at the facility.
The Bab el-Mandeb Strait is another key route for global oil flows. Disruption there, on top of reduced flows through Hormuz, adds more pressure to crude markets.
U.S. President Donald Trump said he expects the war to end after the November midterm elections. However, a Wall Street Journal report indicated that top White House advisers believe the conflict could extend through to early 2029.
The Monday meeting in Oman will be closely watched by oil traders as a potential first step toward easing tensions in the Gulf.
Stop guessing and start investing with confidence. KnockoutStocks gives you the AI insights, market intelligence, and stock research you need to spot opportunities, cut through the noise, and make smarter investment decisions — all in one powerful platform.
Sign up today and get 50% OFF full access to our premium stock picks.
Simply use coupon code SPECIAL50 at checkout to claim your exclusive discount.
