Oil prices surged on Tuesday after attacks by Iran-backed Houthis damaged Saudi energy facilities, adding to concerns that the Middle East conflict could further disrupt global fuel supplies.
Brent crude futures rose $2.00, or 2.06%, to $99.00 a barrel by 0800 GMT, while U.S. West Texas Intermediate crude gained $2.93, or 3.2%, to $94.41. Earlier, Brent reached $99.22, its highest level since July 24, while WTI climbed as high as $94.60, its strongest price since June 8.
The attacks in Saudi Arabia wounded 73 people and led to the suspension of operations at some energy facilities, according to Saudi authorities.
Market pressure was also intensified by Iran’s threat of “economic warfare” against the United States and its claim that it had fired an advanced missile at U.S. warships.
Shipping through the Strait of Hormuz has slowed after Iran warned it could retaliate against further U.S. attacks. Before the conflict began in late February, the waterway carried about one-fifth of the world’s daily oil and liquefied natural gas supplies.
Goldman Sachs raised its December 2026 Brent forecast by $5 to $85 a barrel and its WTI forecast to $80. For 2027, the bank lifted its forecasts to $80 for Brent and $75 for WTI, assuming shipping disruptions in the Middle East continue into next year.
Analysts also warned that fuel markets remain particularly vulnerable, with global diesel supplies expected to stay tight because of limited refining capacity, Russia’s export ban and approaching winter demand.
Original article
Comments