Brent Crude Is Back Above US$100, and Latin America Does Not Feel It Evenly

COMMODITIES · LATIN AMERICA

The barrel crossed US$100 on Wednesday morning for the first time since 24 July. What that does to a Latin American economy depends entirely on which side of the trade it sits on.

Fuel storage at the Suape port complex in Pernambuco. Brazil exports crude and imports refined products, which is why the barrel cuts both ways. (Photo: “Suape Tancagem (46847714455)” by Complexo Industrial Portuário de Suape from Brasil, via Wikimedia Commons, CC BY-SA 2.0.)

Brent crude passed US$100 a barrel on Wednesday morning. It was the first time the benchmark had traded at that level since 24 July.

Trade date: Wednesday 9 September 2026. The figures below are intraday, not settlement prices.

The November Brent crude contract was quoted at US$100.06 a barrel in European morning trading. West Texas Intermediate for October delivery was near US$94.70, up roughly 1.8 percent.

The gap between the two benchmarks is normal. Brent prices seaborne barrels and reacts faster to shipping risk than the American grade does.

What Moved It

US Central Command said its forces destroyed five Iranian crude oil carriers on Tuesday 8 September. The strikes hit near Kharg Island and in the Gulf of Oman.

Central Command described the action as a response to Iran targeting another American warship. It was not framed as a first move.

Iran struck back the same week, hitting US troop positions in Jordan. Reuters reported separately that Tehran plans a new exclusion zone in the Gulf and has threatened the United States with new missiles.

Kharg Island handles the bulk of Iran’s crude exports. A strike there is not a symbolic target.

The market is not pricing a barrel shortage today. It is pricing the chance that the Strait of Hormuz stops working normally.

The Region Does Not Move Together

Latin America is often described as a commodity bloc. On oil it is nothing of the kind.

Brazil, Colombia, Mexico, Argentina, Ecuador, Venezuela and Guyana all produce crude. A higher price lifts export earnings and, in most cases, government revenue.

Chile, Peru, Uruguay, most of Central America and nearly all of the Caribbean buy their fuel. For them the same number is an import bill.

That split is why a single headline price produces opposite effects across a two-hour flight. It also explains why regional inflation readings will diverge next month.

Brazil Sits on Both Sides

Brazil is a net crude exporter and a net importer of refined products. The barrel is revenue at the wellhead and a cost at the pump.

Pre-salt fields improve their economics as the benchmark rises. Deepwater production carries high fixed costs and gains disproportionately from price.

Diesel is the offsetting exposure. Brazilian freight runs on it, and diesel prices feed into food costs with a short lag.

Argentina’s position is closer to neutral and improving. Vaca Muerta output has cut import dependence, though a weak peso still raises the local cost of anything priced abroad.

The Importers Have Less Room

Chile buys almost all of its liquid fuel. A rising barrel arrives as a direct hit to the trade balance and to transport costs.

Peru is in a similar position, with domestic production well short of demand. Both countries import in dollars and sell in local currency.

Central America and the Caribbean face the sharpest version of this. Several island grids still burn fuel oil for electricity, so the barrel shows up in the power bill.

Jamaica and the eastern Caribbean have spent a decade trying to reduce that exposure. Progress has been real but partial.

What to Watch

The first marker is whether Hormuz traffic actually slows. Rerouted or delayed tankers move the price far more than any single strike.

The second is the refined product spread. Crude above US$100 matters less to households than what happens to diesel and gasoline cracks.

The third is currency. An importing country facing a stronger dollar and a dearer barrel takes the hit twice.

The fourth is fiscal. Producer governments will decide whether to bank the windfall or spend it, and several of them face elections.

Brent crude has now risen more than 60 percent since the start of the year. That is no longer a spike; it is a level.

More: Latin America business news, every day from The Rio Times.

Frequently Asked Questions

Why did Brent crude go above US$100?

US Central Command said it destroyed five Iranian crude carriers on 8 September 2026 near Kharg Island and in the Gulf of Oman, and Iran struck US positions in Jordan in reply. The move reflects risk to shipping through the Strait of Hormuz rather than a confirmed loss of supply.

Is a higher oil price good or bad for Latin America?

Both, depending on the country. Brazil, Colombia, Mexico, Argentina, Ecuador, Venezuela and Guyana produce crude and gain export revenue. Chile, Peru, Uruguay, Central America and most of the Caribbean import fuel and face higher costs.

What is the difference between Brent and WTI?

Brent prices seaborne crude and is the global reference; WTI prices American barrels delivered inland. Brent usually reacts faster to shipping and geopolitical risk, which is why the two moved apart on Wednesday.

Sources: US Central Command, Reuters, Kitco, MercoPress, NPR, Associated Press, Yahoo Finance, Rio Times.