Brent Crude Surges Past $97 Amid Disruptions in the Strait of Hormuz Impacting Global Oil Supplies
Oil prices rose slightly on Tuesday amid escalating tensions in the Middle East, which have disrupted global oil supplies for over six months. Brent crude increased by 0.05% to $97.05, while WTI crude climbed 1.03% to $92.42. The uptick in prices follows Iran’s warning of retaliation against any further U.S. attacks on its assets, raising concerns about the ongoing conflict’s impact on energy infrastructure and shipping in the Gulf.
The Strait of Hormuz remains a critical focus for traders, with heightened tensions prompting a risk premium in oil prices. Brent crude had already reached its highest level since July 24 in the previous session. Iran’s warning emphasized the vulnerability of energy infrastructure across the Gulf, including U.S. oil and gas interests, following a weekend of retaliatory strikes with no signs of diplomatic progress.
The U.S. military conducted strikes on three Iranian oil tankers, including one near Kharg Island, Iran’s primary oil export hub. This escalation followed attacks by Iran’s Revolutionary Guards on U.S. warships in the region. In response to the ongoing conflict, Goldman Sachs has revised its oil-price forecasts, raising its Brent and WTI projections by $5 to $85 and $80, respectively, for December 2026. For 2027, the forecasts were adjusted to $80 and $75, reflecting expectations of continued disruptions in Middle East shipping.
Trump claims oil prices will drop
U.S. President Donald Trump stated that oil prices would decline sharply once the U.S. achieves victory in its conflict with Iran. He predicted that gas prices could eventually fall below two dollars per gallon. In a post on his Truth Social platform, Trump attributed high energy costs to ongoing military operations in the Middle East and expressed confidence that markets would stabilize rapidly after the conflict.
Trump wrote, “Oil prices will drop precipitously, like everything else is dropping (but more!), when we WIN the war with Iran.” He also reiterated his stance that the U.S. would not allow Iran to develop nuclear weapons, asserting, “It will all happen quickly, and Iran will never have a Nuclear Weapon. MAGA!”
Iran warns of retaliation
Iranian Parliament Speaker Mohammad Bagher Ghalibaf issued a stern warning to Washington regarding any actions against Iranian energy facilities, stating that there would be severe consequences. In a post on X, Ghalibaf described Iran’s oil and gas production chain as “sprawling, accessible, and exposed,” and cautioned that American oil and gas companies operating in the region share this vulnerability.
He added, “Strike our assets, and you get struck. We’ve already proven it. Ask the bases that are no longer viable.” Ghalibaf also shared an image suggesting that a “lost decade of the US Economy is coming,” in response to comments made by U.S. Secretary of War Pete Hegseth, who claimed that Iran’s oil tanker fleet is defenseless.
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