Oil Prices Soar on Escalating Mideast Tensions
Oil prices surged on Tuesday as tensions in the Middle East escalated, fueled by Iran's threat to retaliate against any new US attacks on its assets. Brent crude futures rose 49 cents or 0.5% to $97.49 a barrel, while US West Texas Intermediate crude climbed $1.44 or 1.6% to $92.92 a barrel.
Suvro Sarkar, head of energy research at DBS Bank, noted that the recent uptick in hostilities between the US and Iran has the potential to 'materially change markets' reading of oil price related risks not only for the rest of 2026 but well into 2027.'
Goldman Sachs raised its Brent and WTI price forecasts by $5 each, reflecting its assumption that Middle East shipping disruptions will continue into 2027. Analyst Ed Meir at Marex also predicted that as long as the war continues, crude oil prices will likely remain elevated through year-end.