Oil Prices Soar as Middle East Supply Disruptions Worsen
Oil prices have surged to their highest level since late July as concerns over supply disruptions in the Middle East continue to weigh on markets. Brent crude has climbed above $91 a barrel, while West Texas Intermediate (WTI) approached $85 after touching $85.37 earlier in the session.
The latest move is being driven by fading hopes for a US-Iran settlement and a recent shipping incident in the Strait of Hormuz, which has left traders nervous about global supply risks.
A vessel was struck by an unidentified projectile while leaving the strait, damaging its engine room and causing a crew casualty. The incident highlights the ongoing security concerns around two crucial global shipping routes: the Strait of Hormuz and the Bab el-Mandeb.
The International Energy Agency has cut its 2026 global supply outlook, forecasting production to decline by 4.3 million barrels a day this year. Gulf output remains 8.3 million barrels a day below normal levels in July, which is contributing to tight oil inventories and higher prices.