Will UAE Petrol Prices Rise Again In September As Oil Stays High?
The average Brent closing price was around $87.7 a barrel in August compared to $83.46 a barrel last month, as US-Iran war rhetoric and attacks on energy vessels in the Strait of Hormuz kept Brent's closing price in the $80s and $90s a barrel range in the first three-and-a-half weeks of August.
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The UAE hiked petrol prices by around Dh0.20 per litre for the month of August 2026 as global crude oil rates traded higher in July due to the Middle East situation. In August, Super 98, Special 95 and E-Plus were priced at Dh3.60, Dh3.49 and Dh3.41 per litre, respectively.
On Tuesday morning, Brent and WTI were trading slightly lower at $91.18 and $84.13 a barrel, respectively.
Naeem Aslam, chief investment officer, Zaye Capital Markets, said the main driver for oil prices remains physical supply uncertainty rather than ordinary demand weakness.
“Tanker traffic through the Strait of Hormuz is still heavily disrupted, and that keeps the market highly sensitive to any development that threatens Iranian exports, regional shipping routes or refinery access. The result is a market where prices can fall sharply on easing headlines but remain structurally supported as long as available barrels and transport capacity stay constrained,” he said.
US President Donald Trump unveiled new sanctions against Iran and threatened to cut off economic ties with Iranian allies that continue to partner with Tehran.
“If tougher sanctions reduce Iranian exports or trigger further shipping constraints, Brent could remain supported above $90; if diplomatic conditions improve and tanker flows normalize, part of that premium could unwind quickly,” he added.
Vijay Valecha, chief investment officer, Century Financial, said around 40 tankers moved through the Strait on Friday night, carrying nearly 16 million barrels, offering some near-term supply relief.
“However, flows remain very low, while rising tensions around the Strait of Hormuz and the US imposing tougher sanctions on Iran and its trading partners, particularly oil buyers such as China, keep supply risks elevated. The sanctions could further restrict Iranian oil exports and support crude prices,” he added.
Since global oil prices are staying higher, local retail fuel rates could see a small upward adjustment. However, an official announcement will be made on Monday.
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