Brent Crude Prices Stuck in $80-$90 Range Amid US-Israel-Iran Conflict
The ongoing US-Israel-Iran conflict continues to impact global oil markets, with Brent crude prices expected to remain in the $80-$90 per barrel range until there is confirmation of a new US-Iran deal or significant escalation in attacks.
A report from Goldman Sachs suggests that this price range is a result of tightening physical markets, ongoing supply disruptions, and geopolitical uncertainty. Despite a brief dip to the mid-$70s after a preliminary maritime agreement in June, Brent crude quickly rebounded above $84.00 per barrel due to major logistical disruptions.
The recent drop in prices was triggered by US President Donald Trump's delay of planned military strikes, but the market has partially rebounded with Brent crude trading at roughly $84.91 per barrel and WTI crude up slightly to $80.64 per barrel.
Tightening physical supplies are also contributing to the high oil prices, with global visible oil inventories plummeting by 6.3 million barrels per day over the past two weeks. The Persian Gulf exports have fallen to just 36% of pre-war levels due to ongoing regional conflict, and tanker rerouting has forced Saudi supertankers to navigate around Southern Africa.