Middle East Tensions Send Oil Prices Soaring to New Heights
Oil prices continued their upward trend on Tuesday as concerns over a prolonged conflict in the Middle East grew. Brent crude futures rose by 34 cents, or 0.35%, to $97.34 per barrel by midnight GMT.
The price increase comes after Iran warned that its energy infrastructure across the Gulf, including US oil and gas interests, was vulnerable to attack. This follows tit-for-tat strikes over the weekend between the US and Iran's Revolutionary Guards, with no sign of a diplomatic breakthrough in sight.
According to analysts at ANZ, the recent escalation has increased the likelihood of a prolonged standoff between the US and Iran, resulting in constrained Persian Gulf supply through 2026. They predict that pre-war throughput may not return until late Q1 or early Q2 2027.