US-Iran Tensions Send Oil Prices Soaring to Multi-Week Highs

Oil prices have reached multi-week highs due to escalating tensions between the US and Iran, which are increasing concerns about disruptions to Middle East oil supplies.

Brent crude rose 1.3% to $98.25 per barrel, while West Texas Intermediate (WTI) crude gained 2.4% to $93.70 per barrel. Analysts at financial institutions have adjusted their outlooks higher as shipping disruptions and geopolitical risks continue into 2026.

Daniel Hynes of ANZ said, 'The recent escalation of the Middle East conflict has increased the likelihood of a prolonged standoff, punctuated by calibrated military action by the U.S. and Iran.'

The tensions followed US strikes on three Iranian oil tankers, including one near Kharg Island, as well as reported missile attacks on US warships and locations in Saudi Arabia.