Oil Prices Soar as Middle East Conflict Escalates

Oil prices rose on September 8 as concerns about a prolonged conflict in the Middle East intensified, heightening worries over supply disruptions. Brent crude futures climbed 34 cents to $97.34 per barrel by 0000 GMT, while US West Texas Intermediate crude was at $92.63 per barrel, up $1.15 or 1.26 percent.

The recent escalation of the conflict has increased the likelihood of a prolonged standoff between the US and Iran, said Daniel Hynes, an analyst at ANZ. He added that this could see Persian Gulf supply remain constrained through the rest of 2026.

Goldman Sachs raised its Brent price forecast by $5 to $85 for December 2026 and to $80 for 2027, reflecting its new assumption that Middle East shipping disruptions will continue into 2027. Similarly, Marex's September commodity outlook predicted that crude oil prices will likely remain elevated through the end of 2026 as long as the war continues.