Oil prices climb as U.S.-Iran conflict intensifies
Brent crude nears $105 and WTI approaches $100 amid supply concerns and regional escalation
Quick Look
- Oil prices surged as Middle East tensions escalated, with Brent crude rising to $105.03 and WTI nearing $100.
- The ongoing U.S.-Iran conflict, involving attacks on warships and tankers, has sparked concerns over potential supply disruptions and further price hikes.
AI-generated summary
Why It Matters
The U.S.-Iran conflict is currently in its seventh month. Recent hostilities include Iranian attacks on warships and U.S. retaliation against tankers.
Oil extended gains Thursday, as worries over escalating tensions in the Middle East and their impact on energy supplies drove U.S. crude toward the $100-a-barrel threshold.
Futures for international benchmark Brent crude rose 3.8% to $105.03 a barrel by 8:30 a.m. ET. U.S. West Texas Intermediate futures jumped 3.9% to $99.78 per barrel.
Top White House advisors have discussed with President Donald Trump the possibility that the Iran war could drag on past Inauguration Day in January 2029, U.S. officials told The Wall Street Journal.
Fighting between the Washington and Tehran has erupted this month after a period of relative calm in August. Iran has tried to attack American warships over the past several days while the U.S. military has destroyed eight Iranian tankers since Saturday in retaliation.
The escalation in the U.S.-Iran conflict, now in its seventh month, is raising the risk of oil prices surging above $120 a barrel as attacks on shipping intensify, said Daan Struyven, co-head of global commodities research at Goldman Sachs, in an interview on CNBC's "Squawk Box Asia."
The physical market may be tightened even more by a further decline in transit volumes, broader escalation or threats to energy infrastructure, extending the upward move in oil prices, said Andrei Constantin, commercial director and trading adviser at TFP Software FZCO.
"WTI has completely unwound its selloff between early June and July, while Brent prices are now well above those seen in early June," said David Morrison, senior market analyst at Trade Nation.
What to Watch
AI outlook — possibilities, not facts
Oil prices may exceed $120 a barrel if shipping attacks intensify.
Possible · Within weeks
Open Questions
- Will the conflict impact global oil transit routes beyond the current scope?
- What further military actions are planned by either side?
