Brent crude oil hits $105 per barrel for first time since May 25

As per the latest business developments, Brent oil advanced to $105 a barrel on September 10 for first time since May 25, 2026 with little indication that the Iran war is abating as real-world energy prices soar. Chinese buying and Saudi Arabia reporting a sharp slump in oil output additionally contributed to the crude surge

The global benchmark extended a surge that saw futures jump to triple figures for the first time since July in the previous session. Renewed fighting during the past week has ended a period of relative calm, and the prospect of a lengthy conflict is fanning renewed fears of energy-fuelled inflation as prices for natural gas and diesel additionally surge.

Brent crude futures were up 2.63% at $104 a barrel at 5:55 pm IST.

Iran has no intention of backing down in the face of an American naval blockade and will escalate its strikes if the US continues attacking its territory, according to a senior official from the Islamic Republic. In the meantime, US President Donald Trump stated the war would only end after the November midterm elections and that significant gasoline price relief would not come before then, signaling little prospect of a near-term de-escalation in the conflict, now in its seventh month.

Brent prices have surged 30% from lows touched in early August as a permanent agreement between the U.S. and Iran to cease attacks never materialised and fighting resumed later in the month.

In the meantime, Saudi Arabia’s oil production has fallen to its lowest this year after Iran-backed Houthi rebels in Yemen threatened shipments from the kingdom’s west coast.

Saudi Arabia told Opec it produced 6.2 million barrels a day in August, the lowest monthly figure in 2026 and 23 per cent softer than in July, as per a market note published by the oil cartel on Thursday.

The Houthis’ decision to enter the Middle East conflict has hit the kingdom’s main workaround for exporting oil without shipping through the Strait of Hormuz.

While fears of prolonged and more severe supply disruptions in the Gulf have lifted Brent above $100, market watchers say the durability of the surge will hinge on China.

In the physical oil market, the dated Brent oil benchmark, against which roughly two-thirds of supply is priced, has been above $100 since September 3, according to LSEG data.

China, the world's largest crude importer, has stepped up purchases in recent weeks after months of subdued demand, boosting physical crude markets, ING market watchers stated in a note.

If Chinese buying keeps recover, it could amplify the impact of any supply disruptions and drive prices elevated, but a pullback in imports could temper the market's upside, ING stated.

"For months the bearish case rested on soft Chinese demand as a reliable dampener. That dampener was never structural. It was a drawdown, a buffer being spent, and buffers empty," stated David Jorbenaze, global oil market lead at commodities information provider ICIS.