Brent Nears $100 as Middle East Tensions Escalate

Brent crude futures for November delivery rose 2.23% to $99.16 a barrel in early Tuesday trading, putting the international benchmark within reach of the $100 threshold. U.S. West Texas Intermediate futures for October gained 3.26% to $94.46 per barrel. The rally also lifted major U.S. energy stocks in premarket trading, with ExxonMobil up nearly 2% and Chevron gaining 1.35%.

The latest surge followed attacks on Saudi energy infrastructure by Houthi militants based in Yemen. Saudi Arabia’s energy ministry said operations at certain facilities were suspended after the strikes wounded more than 70 people, while emergency teams worked to contain fires and evaluate the damage. A Houthi military spokesperson said drones and ballistic missiles had been used to target Saudi Aramco facilities in southern Saudi Arabia.

The attacks come amid another escalation between Washington and Tehran. On Saturday, the U.S. military struck three Iranian oil tankers in retaliation for Iranian ballistic missile attacks on two U.S. Navy warships. Iran condemned the strikes on its vessels as a war crime and an act of economic warfare, further raising concerns that energy infrastructure and shipping could become increasingly exposed to the conflict.

Rhetoric between the two sides has also hardened. Iranian Parliament Speaker Mohammad Bagher Ghalibaf warned that attacks on Iranian assets would be met with retaliation, while U.S. Defense Secretary Pete Hegseth said Iranian oil tankers would be targeted if Iran fired on American vessels. The escalation has already contributed to higher fuel costs, with U.S. gasoline prices reaching record levels.

Oil markets are increasingly reflecting the possibility that disruption could persist well beyond the immediate fighting. Goldman Sachs raised its December 2026 forecasts for Brent and WTI by $5 to $85 and $80 per barrel, respectively, and now expects prices of $80 and $75 in 2027. The bank expects Middle East shipping disruptions to extend into 2027, with tanker rates between the Persian Gulf and China already signaling expectations of prolonged logistical pressure.

The key risk for oil markets is now whether the conflict further disrupts production or major shipping routes in the Persian Gulf. Saudi Arabia is the world’s largest oil exporter, while the region remains critical to global crude flows, making attacks on energy infrastructure particularly sensitive for prices. President Donald Trump said Monday that oil prices would fall sharply once the U.S. wins the conflict with Iran, but for now, markets appear focused on the growing risk of a longer and more disruptive confrontation.