Oil Prices Soar as Middle East Tensions Escalate
Oil prices have risen as tensions in the Middle East escalate following Iran's threat to retaliate against any new US attacks on its assets. The Brent crude futures price climbed 34 cents, or 0.35%, to $97.34 a barrel by 0000 GMT, while U.S. West Texas Intermediate crude was at $92.63 a barrel, up $1.15, or 1.26%.
The recent escalation of the Middle East conflict has increased the likelihood of a prolonged standoff, punctuated by calibrated military action by the US and Iran, according to Daniel Hynes, an analyst at ANZ. This could see Persian Gulf supply remain constrained through the rest of 2026.
Goldman Sachs raised its Brent and WTI price forecasts by $5 to $85 and $80, respectively, for December 2026 and to $80 and $75, respectively, for 2027, reflecting its new assumption that Middle East shipping disruptions continue into 2027.