Oil prices surged to multi-week highs on Tuesday after Iran-backed Houthi attacks disrupted energy facilities in Saudi Arabia and tensions between Iran and the United States escalated.
Brent crude rose 1.68% to $98.63 per barrel, after earlier hitting $99.46 its highest level since July 24. US West Texas Intermediate (WTI) climbed 2.44% to $93.71, reaching $94.73 earlier, its highest since June 8.
Saudi authorities said the Houthi attacks wounded 73 people and forced some energy facilities to suspend operations.
Meanwhile, Iran threatened the United States with “economic warfare” and claimed it had fired an advanced missile at US warships, raising fears of further escalation in the region.
Shipping traffic through the strategically important Strait of Hormuz has also slowed after Iran threatened retaliation against any further US attacks.
Analysts said oil prices are being driven higher by both actual disruptions to energy supplies and a growing geopolitical risk premium.
Goldman Sachs has also raised its December 2026 forecast to $85 per barrel for Brent crude and $80 for WTI, although prices could remain elevated if tensions around the Strait of Hormuz persist.
