Athira Sethu
Kochi, 9 September 2026
Prices of global crude oil increased sharply amid rising tensions between the US and Iran. Increased militarization in West Asia has raised fears regarding the security of oil supplies, which pushed crude oil prices up to its highest level in almost 15 weeks.
During Tuesday’s trading, Brent crude, the international benchmark for oil prices, gained 2.5% to hit an intraday high of $99.45 per barrel. This was above the previous close of roughly $97 per barrel. The prices hit its highest level since May 27, 2026.
Crude oil prices have risen quite sharply in the past month. The price of Brent crude rose by nearly 17% in a month and 3% in the past five days. Oil prices also rose by around 2.5% in the past three months and by 5.2% in six months.
Increased concerns over disruptions to oil production and transportation in the Gulf region were responsible for the recent rise in oil prices. Investors are concerned that the conflict could disrupt the supplies of crude oil from major oil producing nations.
Crude oil prices may rise to as much as $120 per barrel in case of continued disruption in oil supply and production levels in the Gulf region.
What Could Happen to Oil Prices
Investment company Goldman Sachs raised its Brent and WTI crude oil forecast price as at December 2026 to an additional $5 per barrel. The company expects oil prices to hover between $80-$85 per barrel till December.
In 2027, Goldman Sachs forecasts crude oil prices will still be in the $75-$80 per barrel region provided supply problems in West Asia persist. But the company expects a gradual increase in oil supplies in the last half of 2027.
The analysts added that Brent crude may exceed $120 per barrel in case Gulf crude oil output remains more than 4 million barrels per day below pre-conflict levels. But if there is a big jump in production from previous levels, prices may fall to $60 per barrel.
According to CLSA analysts, the surge in diesel and aviation fuel prices is further evidence of the tightness in global oil markets.
Tensions between the USA and Iran
New tensions have emerged which have affected the market in a negative way. The US is no more negotiating with Iran but is adopting a stricter stance against them.
President Donald Trump of the USA has also criticized the previous ceasefire deal with Iran. New incidents of military strikes against American and Iranian targets have further complicated the situation.
Since tensions persist, market watchers are keeping an eye on West Asia, which might affect international oil prices.
