Oil Tops $95 as US Strikes Iranian Tankers
Oil prices jumped over 2.5 percent to near $95 and Brent crossed $100 for the first time since July after the US sank an Iranian tanker, reviving inflation fears before Friday’s CPI.
Market Snapshot
All figures are opening levels as of this morning, September 9.
Stocks are steady to slightly lower at the open as a direct US-Iran military exchange puts the energy shock, not earnings, back at the center of the tape.
The dollar softened, gold and silver caught a haven bid, and the VIX ticked up toward 16.3 as traders repriced Middle East risk.
Oil is the whole story, with WTI up around 2.54 percent to near $95.39 and Brent through $100.
The oil move split the tape cleanly, with energy and defense names rallying while airlines took the hit.
Spring-based Exxon Mobil pushed to fresh highs, Lockheed Martin extended its gains after a UBS upgrade to Buy, and Fort Worth-based American Airlines fell around 4 percent on its unhedged fuel exposure.
Main Story
Oil prices jumped over 2.5 percent to near $95 and Brent topped $100 on Wednesday after the US struck five Iranian tankers, the first direct US-Iran military exchange of the conflict, per TheStreet. What markets had priced as a threat is now an active fight, and oil is doing the talking.
- The US military struck five Iranian tankers on Tuesday, sinking one, after Iran fired ballistic missiles at a US Navy warship and retaliated against a US-used base in Jordan, sending WTI up around 2.54 percent to near $95.39 and Brent above $100, per TheStreet.
- The mainstream read is that a war premium on Gulf supply is being priced in, with Capital.com’s Daniela Hathorn noting Houthi attacks on Saudi facilities have widened the threat beyond Iranian barrels to the routes keeping crude flowing.
- What the tape may be missing is timing, since a supply shock landing days before Friday’s CPI and next week’s Fed meeting is exactly the mix that keeps a September rate hike a live scenario.
Chart of the Day
Crude has climbed for weeks on the Iran risk premium, and today’s tanker strikes pushed WTI to near $95.39.
The $100 handle is the line everyone is watching, and Brent is already through it.
Price sits well above its rising trend, so the burden is on sellers to prove this is a top rather than a pause.
Technical Trading
A few levels across the tape, drawn from Investing.com and Barchart:
- WTI faces psychological resistance at $100, with first support near the 38.2 percent retracement around $88 and the 50 percent level near $86.40, while the 100-day average has crossed above the 200-day, a bullish alignment.
- Gold is consolidating between roughly $4,360 and $4,405, with resistance stacked at $4,455 to $4,465 and then the September 3 high near $4,558, and support at $4,360 before the $4,305 to $4,328 baseline.
- Silver is holding near $67, a 13-year high, with momentum stretched but the uptrend still intact.
Global News
- The US struck five Iranian tankers, sinking one, after Iran fired ballistic missiles at a US Navy warship, a direct military exchange that pushed Brent above $100.
- Iran retaliated against a US-used base in Jordan and said it targeted vessels crossing the Strait of Hormuz, raising the risk of broader supply disruption.
- Houthi attacks on Saudi energy facilities widened the threat beyond Iranian barrels, per Capital.com, keeping inflation risk squarely in focus.
- The White House said it will ban imports of Canadian motorbikes and other products later this month as US-Canada trade relations fray, CNBC reported.
- Morgan Stanley says war-weary oil traders are shunning long-term bets and concentrating positions over shorter horizons, per Bloomberg.
Texas News
Spring-based Exxon Mobil pushed to fresh highs as crude neared $95, a clear tailwind for Permian producers running well above breakeven.
Fort Worth-based American Airlines fell around 4 percent on its unhedged fuel exposure, the flip side of the same oil spike for Texas names.
Looking Ahead
Wednesday, September 9: The EIA weekly petroleum inventory report lands midday, a fresh read on US crude supply as prices test $95.
Friday, September 11: The August CPI report is the last major inflation read before the Fed and the swing factor for whether it hikes or holds.
Wednesday, September 16: The Fed announces its rate decision, where a quarter-point hike has moved from tail risk to a live scenario.
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Prices from Yahoo Finance, CNBC and Fortune. Technical levels from Investing.com and FXStreet. News from Reuters, Al Jazeera and CNBC.
For informational purposes only. Not investment advice. Prices are indicative opening levels and may differ from your broker.
