Oil prices drop 1% amid US-Iran military escalation

Mettis Global reported that oil prices fell on Thursday, September 03, 2026, as traders stayed wary of the latest clash between the United States and Iran. Brent crude futures were trading 1.05% lower at $94.63 a barrel, while West Texas Intermediate dropped $0.96 to $90.05. Citing Reuters, the report noted that the latest exchange was the most serious since July, in a conflict now entering its seventh month.

During the previous session both benchmarks moved in a band from about $2 a barrel higher to roughly $1 lower, and both hit peaks not seen since July 24. Prices later eased after signals that the flare-up was losing steam. US President Donald Trump said the renewed offensive on Iran would not drag on for 'too long', and that American forces had struck Iranian radar and missile sites. Trump also said American units had wiped out fresh installations close to the Strait of Hormuz and cautioned that more attacks could follow if needed.

Iran also enlarged its roster of ships it regards as non-compliant and cautioned that vessels trying to cross the strait risk fines, seizure or detention. Iraq's crude shipments climbed to roughly 2.34 million bpd in August, compared with about 1.35 million bpd in July. Iraqi energy officials linked the rise to steep discounts and Iranian clearances for Iraqi tankers, with September volumes also seen climbing.