Crude oil prices climbed above $103 a barrel on Thursday, the highest level since May 19, as escalating tensions in the Middle East stoked fears of prolonged disruptions to global energy supplies. Top White House advisers reportedly discussed with President Donald Trump the possibility that the war with Iran could continue beyond Inauguration Day in January 2029.
The conflict widened this week as Iran’s Houthi allies in Yemen struck several energy facilities in Saudi Arabia, intensifying concerns over regional stability. Saudi Arabia’s crude oil output fell sharply in August 2026, down by roughly 1.9 million barrels per day.
Iran reported attacks on US warships and tankers in the Persian Gulf, while Washington said it had targeted 10 Iranian tankers. Adding to the upward pressure on prices, oil tanker freight rates surged to record highs, and US crude inventories declined by 300,000 barrels in the week ended September 4.
In contrast, the US Energy Information Administration (EIA) raised its forecast for US crude oil production in 2027 to 14.3 million barrels per day, signaling expectations of robust output despite geopolitical uncertainties.
