Numerous merchant ships belonging to Iran and other countries remain anchored in the Strait of Hormuz in Bandar Abbas, Iran, on September 8, 2026. Fatemeh Bahrami | Anadolu | Getty Images Oil retreated on Wednesday after a report said U.S. energy inventories rose last week, as investors assessed the latest developments in the Middle East conflict and associated supply risks. International benchmark Brent crude futures for November delivery fell 1.02% to $107.64 a barrel. US West Texas Intermediate futures for October fell 1.29% to $104.46 per barrel. U.S. inventories of Brent crude oil, gasoline and distillates rose last week, Reuters reported, citing data sources from the American Petroleum Institute. Crude inventories rose by 7.1 million barrels in the week ending Sept. 11, compared with analysts’ expectations for a drop of about 1.6 million barrels, Reuters reported. Meanwhile, traders remain glued to developments in the Middle East, amid concerns about supply disruptions following an attack by Iran on Saudi Arabia’s crucial East-West oil pipeline that led to its closure over the weekend. U.S. Energy Secretary Chris Wright told CNBC in an interview Tuesday that the shutdown was a brief disruption that will last for days. Andy Lipow, president of Lipow Oil Associates, said in a note Monday that “judging by the pictures online, the repair will take months.” According to a report released Tuesday by the nonpartisan Congressional Budget Office, the U.S. war against Iran has cost the Pentagon about $38.1 billion through Aug. 1 and could result in another $2 billion to $3 billion being spent for each additional month of fighting. “Looking ahead, crude oil is likely to remain closely tied to security conditions along Gulf export routes and the pace of Saudi infrastructure repairs,” said Joseph Dahrieh, managing director at brokerage Tickmill. “Any additional disruption to ocean flows or a prolonged pipeline disruption could tighten the physical market and extend the price rally,” Dahrieh added.
