Oil Prices Surge Towards $100 as Saudi Arabia Halts Operations

Oil prices surged towards $100 a barrel on Tuesday as Brent rose 1.8% to $98.70, while WTI for October delivery advanced 2.8% from Friday's close to $94.08.

The increase in oil prices follows the suspension of energy operations by Saudi Arabia near its border with Yemen due to attacks, which has highlighted risks to supply from the region.

Iran said that a deal to formalize control of the Strait of Hormuz is imminent and will include a temporary safe route, but this move raises questions about how the US would respond after it struck Iranian tankers over the weekend.

Goldman Sachs Group analysts have modestly raised their oil-price estimates on the assumption that shipping disruptions will persist into 2027, citing risks to supply from the region and the potential for prolonged conflict in the Middle East.