Oil Prices Surge as Middle East Tensions Escalate
Oil prices rose on Tuesday as tensions in the Middle East continued to escalate. Brent crude was up 0.05%, or $0.05, at $97.05, while WTI crude rose 1.03%, or $0.94, to $92.42.
The conflict has disrupted global oil supplies for over six months now and traders are building a risk premium into oil prices due to the heightened tensions around the key route for global crude shipments in the Strait of Hormuz.
Iran warned that it would retaliate against any further US attacks on its assets, adding to concerns that the conflict could drag on and threaten energy infrastructure and shipping in the Gulf.
Goldman Sachs revised its oil-price outlook, raising its Brent and WTI forecasts by $5 to $85 and $80, respectively, for December 2026, and for 2027 it raised its forecasts to $80 and $75, based on a new assumption that disruptions to Middle East shipping will continue into 2027.
US President Donald Trump said oil prices would fall sharply once the US achieves victory in its conflict with Iran and predicted that gas prices could eventually fall below two dollars per gallon.