Middle East Tensions Send Oil Prices Higher Amid Disrupted Shipments

Oil prices saw a slight increase on Tuesday after significant Monday losses. Supply risks in the Middle East resurfaced as diplomatic hopes faded following reported attacks on vessels transiting through the Strait of Hormuz.

The price of crude oil rose by $0.71, or 0.8%, to $84.50 a barrel for Brent futures and $0.61, or 0.7%, to $81 a barrel for WTI after suffering steep losses in the previous session.

Analysts predict that higher crude prices will follow if disruptions persist for extended periods. JPMorgan estimates every additional month of disruption could push Brent prices higher by about $7 to $8 a barrel, while Goldman Sachs warns Brent could touch $120 a barrel if shipping disruptions continue.