On Wednesday, U.S. benchmark West Texas Intermediate futures rose 1.75% to $94.66 a barrel, while Brent crude increased by 1.55% to $99.44 a barrel. This price increase follows the U.S. military's destruction of five Iranian crude tankers in response to attempted attacks on an American warship, which successfully avoided harm.
The ongoing conflict, now in its seventh month, has led analysts like Daan Struyven from Goldman Sachs to suggest that the likelihood of oil prices surpassing $120 a barrel is increasing due to intensified attacks on shipping.
Although Goldman Sachs anticipates a gradual recovery of Persian Gulf exports as producers adapt, the recent escalation raises concerns that exports may stagnate, potentially leading to a more bullish price scenario. The situation is particularly critical as military actions had been paused for about a month, with the U.S. initially focusing on economic pressure before resuming strikes