Middle East Tensions Send Oil Prices Soaring to Multi-Week Highs

Oil prices have extended their gains to multi-week highs as tensions in the Middle East escalate. The Brent crude futures price rose $1.25, or 1.3%, to $98.25 a barrel by 0630 GMT. US West Texas Intermediate crude was at $93.70 a barrel, up $2.22, or 2.4%. The recent uptick in hostilities between the US and Iran has increased market concerns over supply disruptions.

Brent earlier rose to as much as $98.79 a barrel, its highest since July 24, while WTI reached $94.21 a barrel, its highest since June 8. Suvro Sarkar, head of energy research at DBS Bank, stated that the recent escalation has the potential to change markets' reading of oil price related risks for the rest of 2026 and well into 2027.

The conflict in the Middle East has resulted in Iran firing an advanced missile at US warships and striking several Saudi cities. The attacks have increased the likelihood of a prolonged standoff, punctuated by calibrated military action between the US and Iran, said Daniel Hynes, an analyst at ANZ. This could lead to Persian Gulf supply remaining constrained through 2026.