Middle East Tensions Fuel Surge in Oil Prices

Oil prices continued to rise on Tuesday as tensions in the Middle East escalated after Iran threatened to retaliate against any new U.S. attacks, increasing worries over supply disruption.

Brent crude futures climbed 49 cents, or 0.5%, to $97.49 a barrel by 0400 GMT, while U.S. West Texas Intermediate crude was at $92.92 a barrel, up $1.44, or 1.6%.

Suvro Sarkar, head of energy research at DBS Bank, said that the recent uptick in hostilities between the U.S. and Iran has the potential to materially change markets' reading of oil price related risks not only for the rest of 2026, but well into 2027.

Goldman Sachs raised its Brent and WTI price forecasts by $5 to $85 and $80, respectively, for December 2026 and to $80 and $75, respectively, for 2027, reflecting its new assumption that Middle East shipping disruptions continue into 2027.