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🇸🇬 Singapore /Economy & Trade

Oil prices rise as prolonged Middle East conflict fuels supply fears

From CNA · () English

Translated from English and summarized by DistantNews. Read the original for the full story.

At a glance

Newswire Named sources Ongoing story
  • Oil prices rose as Iran threatened retaliation against any further U.S. attacks on its assets, increasing concerns about supply disruptions.
  • Brent crude reached $97.34 a barrel and West Texas Intermediate rose to $92.63, with traders adding a risk premium amid tensions around the Strait of Hormuz.
  • Goldman Sachs raised its oil-price forecasts after assuming Middle East shipping disruptions could continue into 2027.

Oil prices extended their gains on Tuesday as the prospect of a prolonged Middle East conflict intensified concerns about supplies. Iran has threatened to retaliate against any new U.S. attacks on its assets, while tensions around the Strait of Hormuz continue to unsettle traders.

Brent crude futures rose 34 cents, or 0.35%, to $97.34 a barrel by 0000 GMT. U.S. West Texas Intermediate crude stood at $92.63, up $1.15, or 1.26%. Brent reached its highest level since July 24 in the previous session as traders built a risk premium into prices around the strategic shipping route.

The recent escalation of the Middle East conflict has increased the likelihood of a prolonged standoff, punctuated by calibrated military action by the U.S. and Iran. This could see Persian Gulf supply remain constrained through the rest of 2026.

· Daniel HynesThe ANZ analyst assessed the effect of the conflict on Gulf oil supplies.

Iran said energy infrastructure across the Gulf, including U.S. oil and gas interests, was vulnerable. The warning followed weekend exchanges of fire. U.S. Central Command said U.S. forces struck three Iranian oil tankers on Saturday, including one near Kharg Island, Iran’s main oil export hub. The strikes followed attacks by Iran’s Revolutionary Guards on U.S. warships operating in the region.

We don't expect a full return to pre-war throughput until late Q1 or early Q2 2027.

· Daniel HynesThe analyst gave ANZ’s estimate for a return to previous supply levels.

“The recent escalation of the Middle East conflict has increased the likelihood of a prolonged standoff, punctuated by calibrated military action by the U.S. and Iran. This could see Persian Gulf supply remain constrained through the rest of 2026,” ANZ analyst Daniel Hynes said in a note. “We don't expect a full return to pre-war throughput until late Q1 or early Q2 2027.”

Goldman Sachs raised its Brent and WTI forecasts by $5. It now expects Brent to reach $85 and WTI $80 in December 2026, followed by $80 and $75 respectively in 2027, based on an assumption that Middle East shipping disruptions continue into 2027. Marex analyst Ed Meir said crude prices would likely remain elevated through year-end while the war continues, citing “the multitude of issues that have yet to be addressed.”

the multitude of issues that have yet to be addressed

· Ed MeirThe Marex analyst explained why the firm expected oil prices to stay elevated.
About this summary

Originally published by CNA in English. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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