Oil prices have climbed above $105 a barrel, with Brent crude trading at $105.82 on Friday, September 11, 2026.
The benchmark price was up 62 cents from the previous morning and roughly $39.25 higher than a year earlier. Brent has risen 16.74% in the past month and 58.91% over 12 months, according to the latest market data.
Both major oil benchmarks are on course to finish the week above $100 a barrel for the first time since mid-May, Reuters reported. The rise has been driven by growing concern over disruption to energy supplies and shipping routes in the Middle East.
Brent crude, which reflects oil traded globally, is the principal international benchmark. West Texas Intermediate, or WTI, is the main reference price for North American crude.
Why oil prices have risen
Market fears have intensified after attacks along important shipping routes, while traffic through the Strait of Hormuz remains severely restricted. The Iran-aligned Houthis also seized Yemen’s port of Mocha on Thursday, posing a further threat to vessels using the Red Sea.
The International Energy Agency said global oil production fell by 1.6 million barrels a day in August, with more than 10 million barrels a day of Gulf output shut in amid heightened security risks.
The agency has cut its forecast for global oil supply in 2026 and expects demand to decline by 2.5 million barrels a day, citing the continuing impasse in negotiations between the United States and Iran and the resulting disruption to normal flows.
Oil prices can move sharply in response to changes in expected supply and demand. Geopolitical tensions, production decisions by Opec+, sanctions, economic growth and fears of recession can all prompt rapid shifts in the market.
Prices are updated continuously while futures markets are open, as traders buy and sell contracts for oil to be delivered at a later date. Expectations about future supply can therefore affect prices before any physical shortage occurs.
Impact on petrol prices and the wider economy
A sustained rise in crude prices normally feeds through to petrol and diesel costs, although pump prices also reflect refining, transport, taxation and the retailer’s margin.
Crude oil makes up a large share of the cost of a litre of fuel, meaning a sharp increase can raise motoring and transport expenses. Higher energy and shipping costs can also add to the price of goods delivered to shops.
Price falls at the pump can be slower than increases, a pattern sometimes described as “rockets and feathers”.
The United States can draw on its Strategic Petroleum Reserve during a major supply disruption. The emergency stockpile is intended to provide temporary relief and support critical services, rather than serve as a long-term solution to high oil prices.
Oil and natural gas markets are also linked. Where industries can substitute one fuel for the other, a sharp move in oil prices can alter demand for gas and place further pressure on energy markets.
