Middle East Tensions Fuel Oil Price Surge
Oil prices have risen as tensions in the Middle East escalate, with Iran warning of possible retaliation against US attacks on its assets. Brent crude futures reached a new high since July 24, while West Texas Intermediate crude prices climbed $1.15.
The recent escalation of the conflict has led to increased concerns over supply disruptions. Daniel Hynes from ANZ notes that 'the likelihood of a prolonged standoff, punctuated by calibrated military action by the US and Iran' is higher than before.
Goldman Sachs has raised its Brent price forecast by $5 to $85 for December 2026, reflecting continued Middle East shipping disruptions. Analyst Ed Meir from Marex predicts that crude oil prices will remain elevated through year-end as long as the war continues.