Oil Hits Highest Since July 24 on Iran's Plan Near Strait of Hormuz

Key Facts

Brent and WTI reached their highest levels since July 24 during the September 7, 2026 session as concerns mounted over further disruption to shipping through the Strait of Hormuz. EL7's daily data recorded Brent at $97.60 a barrel and WTI at $92.70.

Brent reached $98.05 during the session, while WTI climbed to $93.29. That put both benchmarks at their highest since July 24, a period approaching 7 weeks. WTI had no official settlement on September 7 because of the Labor Day holiday, so $92.70 represents EL7's daily-bar close.

The move followed an announcement by Mohsen Rezaei, secretary of Iran's Supreme National Security Council, that Tehran planned an exclusion zone outside the Strait of Hormuz targeting vessels it believes are attempting to transit the waterway. The remarks provided no complete details on the zone's boundaries or enforcement, leaving its practical effect on shipping uncertain.

Iran and Oman were also continuing talks on managing commercial vessel traffic through the strait. Tehran said on September 7 that an understanding on a temporary safe route had reached its final stage and that it planned to register the arrangement with the International Maritime Organization.

Oil-market sensitivity reflects the limited alternatives available to Gulf exporters. EIA estimated that crude oil and petroleum-liquid flows through Hormuz averaged 4,900,000 barrels a day in Q2 2026, down from 21,600,000 barrels a day in Q4 2025 before the conflict began.

The market will focus on official details of the exclusion zone, completion of the Iran-Oman understanding and actual vessel-transit data. Further shipping restrictions could increase the supply-risk premium, while an enforceable arrangement could reduce it if crude flows rise.