Oil prices soar to 6-week highs amid US-Iran tensions
What's the story
Oil prices have continued their upward trend for the third consecutive day, hitting six-week highs. The rise is driven by concerns over escalating tensions in the Middle East after a weekend of strikes between the US and Iran. Brent crude futures for November delivery rose 0.2% to $97.2 a barrel while US West Texas Intermediate futures for October jumped 1.07% to $92.56 per barrel.
Escalation details
US military strikes Iranian oil tankers
The US military recently attacked three Iranian oil tankers after Iran fired missiles at two Navy warships.
The Iranian Foreign Ministry condemned the assault on commercial vessels as a "war crime" and an act of "economic warfare."
David Morrison, senior market analyst at Trade Nation, called it a major escalation that has heightened tensions further.
Price impact
Gas prices hit record highs
The recent strikes have also contributed to a rise in gas prices, which have hit record highs.
Tensions between Washington and Tehran remain high with Iranian Parliament Speaker Mohammad Bagher Ghalibaf writing on X: "Strike our assets and you get struck."
This was in response to Defense Secretary Pete Hegseth's post threatening that the US "will destroy (and sink)" Iranian oil tankers if Iran attacks US vessels.
Market predictions
Goldman Sachs revises Brent and WTI price forecasts
Goldman Sachs has revised its Brent and WTI price forecasts by $5 to $85 and $80 per barrel, respectively, for December 2026.
The bank expects Middle East shipping disruptions to continue into 2027 with production gradually recovering by the second half of that year.
"Markets are increasingly pricing a prolonged Mideast conflict," Goldman said, noting that Persian Gulf-to-China crude tanker rates in Q2 2027 now reflect these expected disruptions.