New York crude oil futures extended gains for a third consecutive session on September 2. The benchmark U.S. crude grade, West Texas Intermediate (WTI) for October delivery, settled at $91.01 per barrel, up $0.79 from the previous day, marking the highest closing level since late July. Renewed hostilities between the United States and Iran fueled concerns that crude supply from the Middle East would be further constrained, attracting buyers.
In the previous session on September 1, President Trump posted on social media that the U.S. was striking Iranian targets near the Strait of Hormuz, claiming the action was retaliation for Iranian mine-laying and attacks on U.S. assets in the Middle East. WTI surged $4.46, or 5.20%, in a single day, reclaiming the $90 level for the first time in about a month. The momentum carried into September 2, and while the pace of gains slowed, buying remained dominant throughout the session.
The crude rally was also evident in Japan’s domestic commodity futures market. In morning trading on September 2, the most actively traded contract for February 2027 delivery rose ¥1,730 from the previous day’s settlement to ¥78,780 per kiloliter. It briefly touched ¥79,800, marking the highest level for a front-month contract since late July. With the exchange of attacks between the U.S. and Iran continuing, expectations that normalization of energy transport would take time underpinned buying.
Equities Rebound as Rate Rise Pauses
While crude prices continued to climb, New York equities rebounded after four consecutive sessions of declines. The Dow Jones Industrial Average closed at 53,061.95, up 295.07 points, or 0.56%. The tech-heavy Nasdaq Composite rose 118.05 points, or 0.45%, to 26,217.83. The S&P 500, a key benchmark for institutional investors, also advanced, with all three major indexes recovering in tandem.
The rebound was supported by a pause in the rise of long-term interest rates. The U.S. 10-year Treasury yield fell 0.014 percentage points from the previous day to 4.7821%, while the 2-year yield declined 0.023 percentage points to 4.371%. After climbing for consecutive days to multi-year highs, the stabilization in yields eased concerns about stretched equity valuations.
Additionally, the deceleration in crude futures’ upward momentum and signs of a near-term peak contributed to improved investor sentiment. Excessive fears that fuel price spikes stemming from Middle East tensions would reignite inflation receded, and the Dow — which had fallen more than 800 points cumulatively over the prior three sessions — attracted dip-buying on valuation grounds.
Among Dow components, Nvidia (NVDA) led gainers with a 3.21% advance, while eight other names including American Express, Caterpillar, Disney, and Boeing posted gains exceeding 1%. Across S&P 500 sectors, ten of eleven sectors rose, with materials, communication services, healthcare, and financials leading the way. On the downside, 3M, the chemicals and office supplies maker, was sold off.
The current crude rally extends beyond simple supply-demand dynamics, affecting risk appetite across financial markets. In the September 1 session, the combination of surging oil prices and rising rates sent the Dow tumbling 419.02 points. A broad range of stocks — including retail, semiconductor, and financial names — were sold off, and investor sentiment deteriorated rapidly.
The September 2 rebound largely reflects an unwinding of that excessive pessimism. As the pace of crude gains slowed, inflation concerns subsided, and equity markets regained a measure of calm. However, with the military conflict between the U.S. and Iran ongoing, uncertainty surrounding the safety of navigation through the Strait of Hormuz and energy supply from the Middle East remains elevated.
Market participants note that if elevated crude prices persist, the impact could spill over into the real economy through gasoline prices and logistics costs, complicating monetary policy management for central banks worldwide. There is growing awareness that the Federal Reserve’s room to cut interest rates may narrow, and the sustainability of the equity market’s recovery will likely hinge on future developments in crude prices and interest rate trends.
Key closing levels are as follows:
IndicatorCloseChangeWTI Crude Futures (October delivery)$91.01+$0.79 (+0.88%)Dow Jones Industrial Average53,061.95+295.07 (+0.56%)Nasdaq Composite26,217.83+118.05 (+0.45%)S&P 500HigherFirst rebound in 4 sessionsU.S. 10-Year Treasury Yield4.7821%-0.014 ptU.S. 2-Year Treasury Yield4.371%-0.023 ptUSD/JPY¥158.71-¥1.47
Note: Data as of the New York market close on September 2, 2026.