Oil Prices Soar on Escalating US-Iran Conflict
Oil prices surged to multi-week highs on Tuesday as tensions between the US and Iran escalated. Brent crude futures rose to $98.25 a barrel, while US West Texas Intermediate (WTI) crude reached $93.70 a barrel.
The recent uptick in hostilities has heightened worries over supply disruptions in the Middle East. Suvro Sarkar, head of energy research at DBS Bank, believes that the conflict has the potential to materially change markets' reading of oil price related risks for the rest of 2026 and well into 2027.
Iran has threatened the US with 'economic warfare,' and there have been reports of missile strikes on US warships. The recent escalation has increased the likelihood of a prolonged standoff, punctuated by calibrated military action by the US and Iran.
Analysts at Goldman Sachs raised their Brent and WTI price forecasts to $85 and $80 per barrel for December 2026, respectively, reflecting their assumption that Middle East shipping disruptions will continue into 2027.