International crude prices soared more than 3% on Wednesday (September 10), as a sharp escalation in military conflict between the US and Iran in the Persian Gulf region reignited fears over potential disruptions to energy shipments through the Strait of Hormuz, heightening global supply risks. By the close of trading, Brent crude futures had climbed 3.4% to settle at $101.21 per barrel, marking the highest closing level since May 22, while US WTI crude futures advanced 3.3% to finish at $96.05 a barrel.

The military standoff intensified abruptly. The US military confirmed on Tuesday that its forces had destroyed five Iranian crude oil transport vessels in response to Iran's prior attempts to attack American warships. US Central Command stated that the naval vessels successfully evaded the attacks without any casualties. This marks the first direct exchange of fire in about a month since the two sides clashed fiercely in July. Although Washington had recently shifted its focus toward applying economic pressure on Tehran, Iran's continued strikes on commercial shipping in and around the Strait of Hormuz ultimately reignited the conflict.

The surge in oil prices has quickly filtered through to consumer fuel markets. US gasoline prices hit an all-time high for this time of year during Monday's Labor Day holiday, reaching $4.15 per gallon. Patrick De Haan, head of petroleum analysis at energy analytics firm GasBuddy, warned on social media Wednesday that US diesel prices are expected to break through the $6-per-gallon mark for the first time in the coming days, adding further upward pressure on inflation.

Wall Street investment banks are issuing more aggressive warnings about the outlook. Daan Struyven, co-head of global commodities research at Goldman Sachs, said in an interview with CNBC's "Squawk Box Asia" that the intensifying US-Iran conflict, now in its seventh month, is significantly increasing the risk of oil prices breaking past $120 per barrel as shipping attacks become more frequent. Goldman's base-case scenario still anticipates a gradual recovery in Persian Gulf exports, supported by producer adaptation measures such as rerouting shipments and future pipeline capacity additions. However, Struyven noted that recent escalations have raised the probability of a "bullish scenario" — one in which continued tanker attacks could prevent exports from recovering as expected in the coming months, potentially driving prices even higher. The market is now closely monitoring the safety of transit through the Strait of Hormuz, as well as the next military or diplomatic moves from both Washington and Tehran, with any fresh conflict event likely to trigger sharp volatility in oil prices.