Oil prices jumped above $96 per barrel Thursday as Iran fired missiles at Kuwait, the latest escalation in a conflict that’s already cost American families at the pump and threatens to push gas prices even higher heading into fall.
Brent crude futures rose 57 cents to $96.20 per barrel after touching $97 earlier in the session. U.S. West Texas Intermediate climbed 85 cents to $91.86. Oil has gained more than 7% this week as the U.S. and Iran traded military strikes for the first time since July.
Kuwait Intercepts Iranian Missiles and Drones
Kuwait’s armed forces said Thursday the kingdom faced “ongoing Iranian aggression” as air defenses engaged incoming missiles and drones, according to the Kuwait Times. The strikes mark Iran’s continued targeting of U.S. Gulf allies as Washington works to keep the Strait of Hormuz open to oil tankers.
Energy Secretary Chris Wright told CNBC Wednesday that more than 17 million barrels of oil transited Hormuz on Monday under U.S. military protection—a wartime record. Before fighting began February 28, about 20 million barrels per day of crude and refined products passed through the strait, a critical chokepoint for global oil supply.
What It Means for American Drivers
Every dollar increase in crude oil adds roughly 2.4 cents to the national average gas price. With crude up $6 per barrel this week alone, Americans are looking at an additional 15 cents per gallon at the pump—on top of prices already elevated by the conflict.
The timing couldn’t be worse for household budgets. Gas prices typically decline after Labor Day as summer driving season ends, giving families relief before winter heating costs hit. Instead, prices are climbing just as schools reopen and fall expenses pile up.
Trump Says Fighting Won’t Last Much Longer
President Donald Trump indicated Wednesday he doesn’t expect the current hostilities to escalate into a return to war. “I don’t think it will be very much longer,” Trump said of the fighting.
Washington’s stated goal is degrading Tehran’s ability to attack ships in the Strait of Hormuz. Whether Iran backs down or the conflict widens will determine if oil prices stabilize near current levels or push toward $100 per barrel—a threshold that would send shockwaves through an economy where inflation has only recently begun cooling.
Key Points
- Oil gained 7% this week as Iran struck Kuwait with missiles and drones
- Brent crude touched $97 per barrel, with U.S. crude at $91.86
- Trump says he doesn’t expect fighting to escalate into renewed war
https://www.cnbc.com/2026/09/03/oil-price-today-iran-war-strait-hormuz.html – September 03, 2026
