Escalating geopolitical tensions in the Middle East, centered on renewed US-Iran hostilities and attacks on tankers near the Strait of Hormuz plus Houthi advances threatening Red Sea routes, have driven sharp volatility in WTI crude prices during the week of September 7. Front-month futures surged from the low $90s early in the week to intraday highs above $104 before profit-taking pulled prices back toward $96–$100 by September 11, marking the strongest weekly advance in months amid fears of prolonged supply disruptions. Saudi output has fallen to multi-decade lows near 6 million barrels per day, widening the IEA's projected 2026 global supply deficit to 1.74 million barrels per day while demand forecasts were also trimmed. Trader positioning reflects these supply risks outweighing softer demand signals and modest inventory draws, though any diplomatic progress on Hormuz access or de-escalation could quickly reverse gains.