Oil Prices Rise Amid Fears of Prolonged US-Iran Conflict Disrupting Middle East Supplies
Oil prices have risen amid concerns over a prolonged standoff between the US and Iran, which could disrupt crude supplies from the Middle East.
The Brent crude futures rose by $0.49 or 0.5% to reach $97.49 per barrel, while U.S. West Texas Intermediate crude gained $1.44 or 1.6% reaching $92.92 a barrel.
Souvro Sarkar, head of energy research at DBS Bank, noted that WTI prices began to narrow the gap with Brent after the Labor Day holiday in the US. He also warned that the recent escalation in hostilities could significantly alter the market's assessment of risks to oil prices not only through the end of 2026 but also in 2027.
Daniel Hynes, an analyst at ANZ Bank, believes that a prolonged standoff could restrict oil supplies from the Persian Gulf through the end of 2026. He stated that exports are unlikely to fully recover to pre-war levels before the end of the first quarter or the beginning of the second quarter of 2027.