$100 Oil Within Reach as US-Iran Tensions Escalate

Oil prices have risen on renewed tensions in the Middle East after US President Donald Trump threatened further strikes against Iran. This has revived concerns about potential supply disruptions from key crude-producing regions.

The Brent crude futures price gained 70 cents to $91.20 a barrel, while U.S. West Texas Intermediate crude rose 93 cents to $87. The gains follow a strong session on Monday when Brent settled 2.7% higher and WTI ended up gaining 3%, briefly reaching its highest level since August 21.

JPMorgan estimates that every additional month of disruption could push Brent prices up by around $7 to $8 a barrel, with the bank expecting average monthly Brent prices to reach around $114 a barrel if the disruption lasts three months. Goldman Sachs has also warned that Brent could rise to $120 a barrel if shipping disruptions through the Strait of Hormuz persist.

Ponmudi R, CEO of Enrich Money, said crude prices would remain closely tied to developments around the Strait of Hormuz, with a sustained recovery in shipping flows potentially unwinding the geopolitical premium in crude and providing relief to emerging-market equities.