Brent crude hits $97.34/barrel as Iran threatens U.S. energy retaliation
Oil prices surged after Iran vowed to strike American assets in the Gulf, while analysts warn supply disruptions could persist until late 2026.
Oil prices extended gains on Tuesday driven by fears of a prolonged Middle East conflict following threats from Iranian officials. Brent crude futures climbed 34 cents to $97.34 per barrel by midnight GMT. U.S. West Texas Intermediate crude rose $1.15 to $92.63 per barrel. Traders added a risk premium to pricing amid heightened tensions surrounding the Strait of Hormuz, where energy infrastructure faces vulnerability from potential Iranian strikes. On Monday, Tehran indicated that American oil and gas interests in the region could be targeted. These warnings followed recent tit-for-tat military actions involving Iranian tankers and U.S. warships. Daniel Hynes, an analyst at ANZ, stated in a note that Persian Gulf supply could remain constrained through the end of 2026 due to calibrated military exchanges between Washington and Tehran. He added that traders should not anticipate full pre-war oil throughput volumes returning until late Q1 or early Q2 of 2027.
