Why Oil Shot Back Up Over $106
Brent crude oil rose 2.3% to about $106.7 a barrel on Monday, September 28, 2026, after U.S.-Iran peace talks stalled. Brent is the world price for oil. Stocks in India opened soft as oil rose. Reuters
That followed a sharp move overnight. Brent was up $3.43, or 3.29%, to $107.75 a barrel at 0540 GMT Monday. Reuters Before Monday, Brent had moved toward $108 a barrel. U.S. oil, called West Texas Intermediate, had moved above $94. Bloomberg
The dollar rose as hopes for a deal faded. Wall Street Journal Iran said it would not change its position on the Strait of Hormuz before Monday trading. Hormuz is like a narrow doorway that oil ships must pass through. Bloomberg
Monday's rise came after a fall on Friday. Oil fell about 2% Friday on hopes for a truce between the U.S. and Iran. Friday also brought talk of a possible U.S. ban on diesel exports. Reuters
Prices have moved up and down for more than a week. In one earlier session Brent closed up $3.83, or 3.86%, to $103.08. A November contract closed at $100.34, down $3.53, or 3.4%, on hopes for talks. Earlier in the month oil rose on fears of more fighting in the Middle East.
U.S. and Iranian officials met in New York in September 2026. Those talks showed little progress. A new push faces problems because U.S. allies want to keep pressure on Tehran. Wall Street Journal The U.S.-Israeli war on Iran started in late February.
The broader context here is fear about shipping, not oil being pumped right now. The jump from $100.34 to $103.08 and then to $106 to $108 shows traders adding extra cost for danger, not a change in supply that has been reported. Friday's 2% fall and Monday's 2 to 3% jump show how fast traders change bets after each headline.
In my view, oil and the dollar together matter for regular people. When both rise, gas and imported goods can cost more. That can raise everyday prices, which hurts countries that buy oil from abroad, like India. Talk of a diesel ban points to tight fuel supply and pressure on fuel makers if oil stays above $100 and warnings about Hormuz continue. Until New York brings a clear step to calm things and keep ships safe, traders will likely keep betting more on price jumps.
