Energy

Oil Holds Above $100 as China Pauses Fuel Exports and U.S.-Iran Tensions Rise

Brent traded above $102 a barrel in Asia on Friday. China's two biggest fuel exporters have stopped shipments for October.

By Global Market News Staff · Oct. 2, 2026 · 07:00 GMT · 1 min read

A large industrial plant lit up at night — Photo: Chris LeBoutillier / Unsplash

Why it matters

Oil prices feed directly into fuel costs and inflation worldwide.
High inflation is the main reason central banks have been raising rates.
Less Chinese fuel on the market tightens supply across Asia.

Oil prices held above $100 a barrel on Friday. Brent crude traded above $102 during the Asian session, according to NordFX's market summary, after settling near $100.60 on Thursday, up 2.6%, TheStreet reported.

China keeps its fuel at home

State-owned PetroChina and privately controlled Zhejiang Petrochemical have suspended exports of diesel, gasoline and jet fuel for October to protect domestic inventories, Hydrocarbon Processing reported. In September, Chinese refiners loaded about 1.4 million metric tons of diesel, 500,000 tons of gasoline and at least 2 million tons of jet fuel for export.

China first restricted fuel exports in March after war broke out involving Iran, eased the curbs in July and now manages shipments month by month, according to the report.

Tensions in the Middle East

Tensions between the United States and Iran are rising, NordFX reported, adding to worries about supply. Brent is about 57% higher than a year ago, Fortune reported.

High oil prices are a major reason inflation has stayed near 3% in the U.S. and why the Federal Reserve, the European Central Bank and the Bank of Japan all raised rates in September.