Crude oil prices continued their upward trajectory as geopolitical tensions in the Middle East intensified, with peace prospects diminishing amid renewed threats between the United States and Iran. At the time of the original article's publication, Brent crude was trading at $97.66 per barrel, while West Texas Intermediate was quoted at $93.05 per barrel, according to OilPrice.com. However, more recent market data shows Brent crude trading at $99.33 per barrel with a gain of $2.33, or 2.40 percent, while WTI Crude reached $94.55 per barrel with an increase of $3.07, or 3.36 percent, as reported by OilPrice.com.
The upward pressure on oil prices stems from multiple factors affecting Middle Eastern crude supplies. Iran issued a threat of economic warfare against the United States and announced plans to establish a new shipping corridor in the Strait of Hormuz, a critical chokepoint for global oil transportation. Mohsen Rezaei, secretary of Iran's Supreme National Security Council, stated that economic warfare would be met by a maritime exclusion zone across the Persian Gulf, fundamentally altering operational postures toward U.S. warships and bases, according to Reuters reporting cited by OilPrice.com.
Additional upward pressure came from escalating Houthi attacks on Saudi Arabia's Jizan refinery, a key processing facility with a daily crude oil capacity of 400,000 barrels. The refinery has become a frequent target for Yemeni forces amid broader regional conflicts. Market analysts are revising their outlooks for extended Middle East disruptions.
ANZ analyst Daniel Hynes stated that a full return to pre-war throughput levels would not be expected until late first quarter or early second quarter 2027, as quoted by Reuters through OilPrice.com. ING analysts noted that speculators have increased their net long positions in Brent crude as peace prospects continue to diminish. The combination of threatened tanker routes, active attacks on refining infrastructure, and heightened U.S.-Iran tensions suggests that crude oil markets will remain under supply pressure in the near term, with geopolitical risks potentially sustaining prices at elevated levels into 2027.
Source: oilprice.com