Oil Prices Surge Amid US-Iran Conflict and Supply Fears
Oil prices rose for the second straight day on Tuesday due to concerns over potential supply disruptions from the Middle East. The US-Iran conflict has been a major factor, with officials from both countries holding talks with mediators in an attempt to end the seven-month war.
The Brent crude futures price increased by $1.65, or 1.57%, to reach $107 per barrel, while the US West Texas Intermediate crude rose by $1.29, or 1.40%, to $94 a barrel. Crude exports from major Middle Eastern producers rose to 12.8 million barrels a day in September, their highest level since February.
The increase was driven by higher shipments from Saudi Arabia and the United Arab Emirates. The US is considering regulatory relief that would allow wider sales of red-dyed diesel, which could lower prices.
However, Goldman Sachs has outlined a scenario where oil prices could reach as high as $120 per barrel if attacks on vessels in the Middle East intensify.