Brent crude prices surged over $3 on Tuesday, marking a third consecutive day of gains, amid escalating tensions in the U.S.-Israeli conflict with Iran and threats to shipping through the Strait of Hormuz. Brent futures reached $80.89 a barrel, a 4.1% increase, while U.S. West Texas Intermediate crude rose 3.6% to $73.78. Analysts warn that the ongoing conflict poses risks to oil supply, especially with Iran’s threats against energy infrastructure and shipping in the region.
The Strait of Hormuz, a crucial passage for 20% of the world’s oil, has seen tankers avoiding the area due to heightened insurance costs and threats from Iranian officials claiming the strait is closed. As tensions escalate, analysts predict oil prices will remain elevated, with Bernstein adjusting its 2026 Brent price forecast to $80, potentially rising to $120-$150 in a prolonged conflict scenario.
Refined product futures are also on the rise, reflecting concerns over supply disruptions, particularly after Saudi Arabia shut down its largest oil refinery following a drone strike. As the situation develops, markets are closely monitoring the implications of the Middle East conflict on global energy prices.
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