Oil Prices Spike as U.S.-Iran Tensions Escalate
Oil prices surged on Tuesday as the risk of prolonged conflict in the Middle East intensified following Iran's threat to retaliate against any new U.S. attacks.
The Brent crude futures price climbed 49 cents, or 0.5%, to $97.49 a barrel by 0400 GMT, while U.S. West Texas Intermediate crude rose $1.44, or 1.6%, to $92.92 a barrel.
Suvro Sarkar, head of energy research at DBS Bank, noted that Brent absorbed the weekend's escalation a day earlier and that WTI was playing catch-up after Monday's Labor Day holiday in the U.S.
Analysts expect oil prices to remain elevated due to the ongoing conflict. Daniel Hynes, an analyst at ANZ, said that the recent escalation has increased the likelihood of a prolonged standoff between the U.S. and Iran, which could see Persian Gulf supply remain constrained through 2026.