Oil Prices Surge as US-Iran Tensions Escalate

Oil prices continued to rise on Tuesday as tensions between the United States and Iran escalated, threatening supply disruptions through the Strait of Hormuz. The Brent crude futures price increased by 0.4% to $97.4 a barrel, while U.S. West Texas Intermediate crude rose 1.5% to $92.9 a barrel.

The threat of attacks on Gulf energy infrastructure has added to the risk premium in prices, with Iran warning that it may target U.S. oil and gas interests in retaliation for further American attacks.

Brokers have raised their oil-price forecasts by $5 a barrel, citing expectations that disruptions to Middle East shipping could continue into 2027. They now expect Brent crude to average $85 a barrel in December 2026, compared with a previous forecast of $80.