Middle East Tensions Send Crude Oil Prices Soaring Above $90

The Middle East conflict between Iran and the US has caused crude oil prices to surge in September. Brent crude futures rose by 56 cents (0.6%) to $91.05 per barrel on September 1, while WTI crude increased by 83 cents (1%) to $86.59 per barrel.

The current tensions are reminiscent of the situation in August when Brent crude futures reached their highest level since then. The Strait of Hormuz is a critical route for global energy shipments, and any disruption could tighten physical supply and increase the geopolitical risk premium embedded in crude prices.

Analysts have maintained forecasts for oil prices above $80 per barrel in 2026 due to shipping disruptions linked to the US-Iran conflict. However, market forecasts remain conservative compared to the current geopolitical risk premium.