Oil jumps above $100 as China demand rebounds

Brent crude (UKOIL), the international oil benchmark, climbed back above $100 a barrel in recent trading, closing at $101.21 after a 3.4% advance. U.S. West Texas Intermediate crude (USOIL) also rose sharply, ending the session at $96.05 a barrel, up 3.3%. Brent (UKOIL) has now gained more than 60% in 2026 and has exceeded the $100 mark during three separate periods this year.

The latest rally underscores the renewed strength in global crude benchmarks as both demand factors and geopolitical risks tighten market conditions. Prices have reacted quickly to shifts in buying patterns and supply expectations, with traders closely watching developments in key importing and producing regions.

A key driver of the latest price surge has been an escalation in the U.S.-Iran conflict. Recent U.S. strikes targeted Iranian oil tankers in the Gulf of Oman and near Kharg Island, heightening concerns about the security of oil shipments from the region. These developments have added a risk premium to crude prices amid fears of potential disruptions to Middle East energy supplies.

The heightened tensions have prompted warnings that oil prices could climb further if supply routes are affected. Some market analysis points to the possibility of Brent moving above $120 a barrel should the conflict lead to more significant disruptions, reinforcing the sensitivity of prices to geopolitical shocks.

On the demand side, China has increased its crude purchases after a period of subdued buying, providing additional support to prices. Chinese crude imports recovered to nearly 9 million barrels per day in August, up from a June low of 7.15 million barrels per day. As the world’s largest crude importer, China’s renewed buying has been an important factor in tightening the market.

The pickup in Chinese imports follows a hiatus that had previously helped keep prices in check earlier in the conflict period. The recent rebound signals stronger demand from Chinese refiners and buyers, contributing to the upward pressure on global benchmarks alongside the geopolitical risk premium.

The combination of recovering Chinese demand and rising Middle East supply risks has created a supportive backdrop for crude prices. Brent’s move back above $100 a barrel reflects both the structural strength in 2026’s price performance and the immediate impact of recent events.

With Brent already up more than 60% this year and trading repeatedly in triple digits, market participants are focused on how lasting the current tightness will be. Future price movements are likely to hinge on whether Chinese import momentum continues and how the U.S.-Iran confrontation evolves in key shipping lanes.