Oil prices rise on Tuesday

Oil prices rose to multi-week highs on Tuesday as attacks on Saudi energy facilities and renewed tensions between Iran and the United States heightened concerns over Middle East supply disruptions.

Brent crude futures gained $2, or 2.06 per cent, to $99 a barrel by 0800 GMT, while US West Texas Intermediate (WTI) rose $2.93, or 3.2 per cent, to $94.41. Brent earlier reached $99.22, its highest since July 24, while WTI hit $94.60, its highest since June 8.

Operations at some Saudi energy facilities were halted after attacks by Iran-aligned Houthis wounded 73 people. Iran also threatened the US with “economic warfare”, while shipping traffic through the Strait of Hormuz slowed amid fears of further escalation.

The Strait of Hormuz handled about one-fifth of global daily oil and liquefied natural gas supplies before the conflict began in late February. ANZ analyst Daniel Hynes said a full return to pre-war shipping levels was unlikely until late first quarter or early second quarter of 2027.

Goldman Sachs raised its December 2026 Brent and WTI forecasts by $5 to $85 and $80 a barrel, respectively, citing expectations that Middle East shipping disruptions will continue into 2027.

Attribution: Reuters