Oil Prices Near USD 100 At Six-Week High, Brent Jumps 1.71% As Iran-US Tensions Escalate

Mumbai: Oil prices climbed to six-week highs on Tuesday, with Brent crude moving closer to USD 100 a barrel as hopes of lasting peace between Iran and the US weakened amid renewed attacks and threats.

At 3:09 pm, Brent crude was trading 1.71 percent higher at USD 98.66 a barrel. West Texas Intermediate rose 2.84 percent to USD 94.08 a barrel.

Both benchmarks have recovered much of the ground lost after an earlier ceasefire raised expectations of a durable resolution and restoration of disrupted oil supplies.

Strait of Hormuz back in focus

The latest price increase followed Iran’s warning of “economic warfare” against the US. Tehran also claimed it had fired a new advanced missile at American warships.

Iran further announced plans to establish a new shipping corridor in the Strait of Hormuz. The move could make tanker traffic through the strategically important waterway more difficult and increase concerns about global energy supplies.

The Strait of Hormuz is a crucial route for oil and liquefied natural gas shipments from the Middle East to international markets.

Fresh attacks unsettle markets

Oil markets were already under pressure after Saudi Aramco facilities were reportedly hit in fresh attacks on Monday. The strikes followed US military action against three Iranian oil tankers.

The continuing exchange of attacks has also pushed fuel prices higher. US gasoline prices crossed USD 4 a gallon, touching a record level for Labor Day.

Analysts warn of prolonged disruption

ANZ analyst Daniel Hynes reportedly said a complete return to pre-war oil throughput was unlikely before late first quarter or early second quarter of 2027.

Goldman Sachs commodities research co-head Daan Struyven warned that Brent could climb to USD 120 a barrel if attacks on shipping broaden and intensify.

Energy Aspects said commodity funds were turning bullish amid growing concerns over declining global oil reserves.

Oil prices had dropped from their wartime peak of USD 126 in late April to just above USD 70 in early July. Fading peace hopes and supply risks have since driven a sharp rebound.