Oil prices on the rise amid conflict risks and supply concerns in the Middle East
Concerns that conflicts in the region will be prolonged and supply disruptions may occur pushed Brent and WTI barrel prices upward.
Growing concerns that conflicts in the Middle East could be prolonged and that disruptions might occur in global oil supply caused oil prices to continue their upward movement on Tuesday.
Middle East Tension and Price Increases
Expectations that the conflict in the Middle East could be prolonged and concerns regarding potential disruptions in oil supply paved the way for an upward movement of prices in the markets.
Iran's statements regarding potential retaliation against possible new US asset strikes increased concerns that tensions in the region would escalate, impacting prices.
Brent and WTI Levels
The barrel price of Brent crude recorded an increase of 0.35 percent, reaching $97.34.
US West Texas Intermediate, namely WTI, gained 1.26 percent to rise to the level of $92.63.
Strait of Hormuz and Risk Premium
In the previous session, Brent crude had managed to reach its highest level seen since July 24.
It is observed that investors are reflecting an additional premium into prices due to risks around the Strait of Hormuz, which is of vital importance for global oil shipments.
Supply Disruption and Calendar Expectations
ANZ analyst Daniel Hynes stated that recent developments strengthen the possibility of a prolonged stalemate between the US and Iran.
Hynes conveyed that oil supply in the Persian Gulf could remain constrained for the rest of 2026 and return to normal flow in early 2027.
Goldman Sachs Forecasts
Goldman Sachs incorporated the expectation that disruptions in maritime transport will persist until 2027 into its analyses.
The bank updated its December 2026 Brent crude forecast to $85 and its WTI forecast to $80.