Crude oil prices surged over $4 on Tuesday, marking a third consecutive session of gains. The widening conflict between the U.S. and Iran has disrupted fuel shipments, fueling concerns over further Middle East oil and gas supply disruptions.
Brent crude futures climbed 6 percent to $82.68 a barrel, hitting their highest level since July 2024. U.S. West Texas Intermediate crude gained 7 percent to $75.91, reaching its highest point since June.
The conflict has intensified, with Israel attacking Lebanon and Iran responding with strikes on energy infrastructure and tankers in the Strait of Hormuz. This waterway, crucial for global energy transport, is now largely avoided by shipping as insurers have canceled coverage.
Analysts warn that targeting additional energy infrastructure could lead to prolonged outages. The United Arab Emirates reported a significant fire at Fujairah port. Several countries have seen oil and gas infrastructure shut down due to damage or as a precaution, including Qatar's liquefied natural gas production and Saudi Arabia's largest refinery.
Oil prices are expected to remain elevated as markets assess the conflict's impact. Bernstein has raised its 2026 Brent oil price forecast and suggests prices could reach $120-$150 in an extreme scenario.