Iran fighting drives oil and gas prices higher, raising inflation fears in Europe

Renewed fighting between the US and Iran has sent oil and gas prices surging, with Brent crude climbing past $95 per barrel and European natural gas futures hitting levels not seen in three years. For a continent still nursing wounds from the 2022 energy crisis, the timing could hardly be worse: winter is coming, and so are the heating bills. Brent crude rose more than $4 per barrel to settle near $94.65 on September 1, 2026, then pushed above $95 the following day. European natural gas futures have exceeded €70-75 per MWh, their highest since 2023. The Strait of Hormuz problem The Strait of Hormuz, that narrow waterway between Iran and the Arabian Peninsula, handles roughly one-fifth of global LNG supplies and a massive share of seaborne oil. US airstrikes on Iranian positions near the strait, followed by Iranian retaliation, have sharply curtailed tanker traffic through the chokepoint. Recent reports indicate only a handful of vessels are making daily passages, a fraction of normal flow. President Donald Trump has called for strong responses to Iranian provocations. US-Iran tensions flared in late February 2026, pushing prices higher before a temporary ceasefire in June offered a...