Oil Prices rise as prolonged Middle East conflict fuels supply worries

SINGAPORE, SEPTEMBER 8, 2026 — Oil prices extended their gains on Tuesday, reaching multi-week highs as growing fears of a prolonged conflict in the Middle East raised concerns about disruptions to global crude supplies.

Brent crude futures climbed as much as 1.7% to around $98.63 a barrel, while U.S. West Texas Intermediate (WTI) rose about 2.4% to $93.71. Earlier in the session, Brent briefly reached $99.46, its highest level since July 24.

The latest price surge follows escalating tensions involving Iran, the United States and Iran-backed Houthi forces. Houthi attacks on energy facilities in Saudi Arabia reportedly disrupted operations at some sites and injured 73 people, adding to fears that the conflict could threaten critical oil infrastructure and shipping routes.

Markets are also closely watching developments around the Strait of Hormuz, a crucial route for global energy shipments. Shipping traffic through the waterway has slowed amid threats of retaliation from Iran, increasing concerns among traders about further supply disruptions.

The possibility of a prolonged conflict has also prompted major financial institutions to raise their oil-price forecasts. Goldman Sachs increased its December 2026 Brent forecast to $85 per barrel, while HSBC raised its 2026 forecast to $90, with a projection of $95 for the fourth quarter.

Higher crude prices are already putting additional pressure on fuel markets. Analysts warn that diesel and gasoline supplies could remain tight because of limited refining capacity, disrupted energy infrastructure and strong seasonal demand.

For oil-importing economies, a prolonged rise in crude prices could translate into higher petrol and diesel costs, increased transportation expenses and renewed inflationary pressure.

The market will continue to closely monitor military developments in the region and the movement of oil tankers through key Middle Eastern shipping routes.

For now, traders remain on alert as geopolitical tensions continue to shape the direction of global oil prices.