Oil prices hit multi-week highs on Iran risks
- Oil prices climbed to multi-week highs as rising U.S.-Iran tensions increased concerns about prolonged Middle East supply disruptions.
- Brent crude rose 1.3% to $98.25 per barrel, while West Texas Intermediate crude gained 2.4% to $93.70 per barrel.
- Analysts and financial institutions adjusted oil outlooks higher as shipping disruptions and geopolitical risks continued into 2026.
Brent crude and West Texas Intermediate crude prices rose to multi-week highs on Tuesday as escalating U.S.-Iran tensions increased concerns about prolonged disruptions to Middle East oil supplies.
Brent crude futures increased $1.25, or 1.3%, to $98.25 per barrel, while WTI crude rose $2.22, or 2.4%, to $93.70 per barrel after reaching their highest levels since July 24 and June 8 respectively.
“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,” said Daniel Hynes, an analyst at ANZ.
The latest tensions followed U.S. strikes on three Iranian oil tankers, including one near Kharg Island, and Iran’s reported missile attacks on U.S. warships, while Iran-backed Houthi forces also targeted locations in Saudi Arabia.
Shipping traffic through the Strait of Hormuz slowed after Iran threatened retaliation against future U.S. attacks, increasing concerns about one of the world’s key oil transit routes.
Goldman Sachs raised its Brent and WTI price forecasts by $5, projecting December 2026 prices of $85 and $80 respectively, while analysts at Marex said crude prices could remain elevated while the conflict continues.
