US-Iran Tensions Send Oil Prices Soaring Above $92 Per Barrel

Oil prices have remained above $92 per barrel as tensions escalate between the US and Iran. The Strait of Hormuz, a crucial oil transit route, remains a concern for investors.

Brent crude futures rose 55 cents to $92.17, while US West Texas Intermediate crude gained 25 cents to $84.64 a barrel. Both benchmarks have increased for four consecutive sessions, reaching their highest levels since July 24.

Analysts predict that oil prices will continue to rise due to ongoing regional instability and the risk of disruptions in shipping routes. JPMorgan estimates that every additional month of disruption could add $7 to $8 per barrel to Brent prices, with an average monthly price reaching around $114 per barrel if disruptions last three months.

Goldman Sachs also warns that Brent could surge to $120 a barrel if shipping disruptions continue through the Strait of Hormuz. However, the bank expects tensions in the Middle East to eventually ease under its base case scenario, forecasting an average Brent price of $80 per barrel in the fourth quarter and $75 per barrel next year.