Oil Prices Near $100 as Middle East Conflict Escalates
Global oil prices climbed close to $100 per barrel on Tuesday amid renewed hostilities in the Middle East. Brent crude futures rose nearly 2.3% to around $98.50, while WTI crude gained about 2.7% to trade at $94 per barrel. The price surge followed reports of attacks by Houthi militants and a broader escalation between U.S. forces and Iran, which has disrupted oil shipments through the Red Sea. Goldman Sachs raised its short-term price forecasts for both Brent and WTI crude due to ongoing supply disruptions and a global market deficit estimated at 1 million barrels per day. The bank now expects $85 for Brent and $80 for WTI in December, up from previous estimates of $5 less each. However, prices have not risen as much as expected because drawdowns are coming primarily from government reserves rather than commercial stocks. The firm warned that if supply disruptions persist—especially through the Strait of Hormuz or Red Sea—Brent crude could rise to $120 per barrel. A potential deal between Iran and Oman for a temporary safe shipping route is under discussion, but it does not include U.S. participation.
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Topics: geopolitical_conflict goldman_sachs_forecast oil_prices