Middle East oil risks pushed crude prices higher on Tuesday as tensions between Iran and the United States intensified. Traders grew increasingly concerned about possible disruptions to regional supplies. Markets also watched shipping activity around the Strait of Hormuz for signs of further pressure.
Brent crude futures rose 49 cents, or 0.5%, to $97.49 per barrel by 0400 GMT. U.S. West Texas Intermediate crude gained $1.44, or 1.6%, to $92.92. WTI also recovered ground after U.S. markets remained closed for the Labor Day holiday.
Suvro Sarkar, head of energy research at DBS Bank, said WTI was catching up with Brent. Brent had already reacted to the weekend’s escalation when global markets reopened. He warned that the latest developments could alter how investors assess oil risks.
The renewed tensions have raised concerns about a longer confrontation between Washington and Tehran. Iran has threatened retaliation against any further U.S. attacks on its assets. Tehran also claimed it launched an advanced missile toward American warships operating in the region.
The latest escalation followed a series of military exchanges between the two sides. U.S. Central Command said American forces struck three Iranian oil tankers on Saturday. One of those vessels was reportedly near Kharg Island, a major Iranian oil export hub.
Iran’s Revolutionary Guards also carried out strikes against U.S. warships in the region. Those developments have increased concerns about further attacks on energy infrastructure. Investors now face greater uncertainty over how much crude can reach international markets.
Analysts expect the effects could extend beyond the immediate trading period. Daniel Hynes of ANZ said the conflict could produce a prolonged standoff. He expects Persian Gulf supplies to remain restricted through much of 2026.
Hynes also expects oil flows to take time to return to earlier levels. His forecast points to a possible recovery during late March or early April 2027. That outlook reflects concerns about continuing military activity and transportation risks.
Shipping through the Strait of Hormuz has also slowed this week. The slowdown followed Iran’s warning about possible retaliation against future U.S. attacks. The waterway remains crucial for global energy shipments, making any disruption a major market concern.
Goldman Sachs has responded by raising its crude price forecasts. The bank lifted its December 2026 Brent forecast to $85 per barrel. It also raised its WTI forecast to $80, while increasing its 2027 estimates.
The bank expects Brent to average $80 in 2027. Its revised WTI forecast stands at $75 for the same year. The changes reflect an assumption that shipping disruptions could continue into 2027.
Marex analyst Ed Meir also expects prices to remain elevated. He said ongoing conflict could keep crude markets under pressure through the end of the year. Middle East oil risks will likely remain central to investor decisions as the situation develops.
For now, traders are watching military activity, tanker movements, and diplomatic signals closely. Any further escalation could quickly affect supply expectations and crude prices. Middle East oil risks therefore remain a major factor shaping energy markets through 2026.