Brent Oil Prices Surpass $98 as Geopolitical Tensions Heighten Supply Concerns

Brent Crude Climbs Above $98 Brent crude prices rose to $98.06 a barrel yesterday, closing at $97 during the day.
In the new trading session, prices surged again.
Geopolitical Tensions Amplify Supply Concerns Escalating U.S.–Iran tensions and slowdowns in the Strait of Hormuz have increased market volatility.
Iran’s National Security Council Secretary General Muhsin Riza warned that the U.S.
blockade would trigger a “no‑fly zone” around the Gulf of Basra, and that Tehran’s operational posture toward U.S.
forces had fundamentally changed.
“The U.S.
blockade will create a ‘no‑fly zone’ around the Gulf of Basra,” said Muhsin Riza.
Iranian Parliament Speaker Mohammed Bakir Kalibaf cautioned that if U.S.
forces target Iranian oil tankers, American oil and gas companies in the region could be retaliated against.
“If the U.S.
targets Iranian tankers, we will target American companies,” warned Kalibaf.
Attacks on Saudi Energy Facilities The Saudi Ministry of Energy reported that several southern energy sites were hit, causing fires in some areas.
A new strike on Aramco’s Cizan refinery—located near the Yemen border on the Red Sea—heightened concerns about supply.
The refinery processes about 400,000 barrels per day and had halted exports in August following the July attack.
Market Outlook Prolonged conflicts, infrastructure damage, and potential maritime disruptions could lead to larger supply gaps.
Analysts are revising upward their price forecasts, expecting the crisis to persist until 2027.
Full restoration to pre‑war shipping levels is projected for late Q1 or early Q2 of 2027.