Dubai – Business News Report|| Oil prices climbed significantly during Tuesday’s settlement session following official announcements from the Saudi Ministry of Energy regarding targeted strikes against national energy infrastructure. The ministry confirmed that multiple facilities were hit, causing fires across several sites and forcing temporary operational halts. A responsible source stated that the attacks resulted in injuries to both citizens and residents, with medical care currently being provided. Ongoing assessments continue to determine the full extent of the damage and its impact on production capabilities.
Market Reaction and Price Movements
Futures contracts for Brent crude rose by 92 cents, or 0.95 percent, closing at $97.92 per barrel. West Texas Intermediate gained $1.55, or 1.69 percent, settling at $93.03 per barrel. These increases reflect growing risk premiums as traders price in potential supply disruptions. Brent previously touched its highest level since July 24, driven by heightened geopolitical tensions surrounding the Strait of Hormuz and fears of broader regional conflict affecting global shipping lanes.
US Strategic Reserves Hit Decades Low
In a separate development, US crude oil inventories in the Strategic Petroleum Reserve dropped by approximately 1.2 million barrels last week to 285.4 million. This marks the lowest level since November 1982, according to Department of Energy data. The drawdown aligns with an agreement to withdraw 172 million barrels to manage reserves amid geopolitical risks. Analysts warn this historic low raises concerns about America’s ability to buffer against sudden global energy market shocks.
Escalating Regional Tensions
Iran warned Monday that Gulf energy infrastructure remains vulnerable, including US-linked oil and gas interests. This follows reciprocal strikes earlier in the week with no diplomatic breakthrough in sight. US Central Command reported targeting three Iranian oil tankers on Saturday, one near Kharg Island, Iran’s main export hub. These actions followed Iranian Revolutionary Guard attacks on US warships in the region.
Analyst Forecasts Revised Upward
ANZ analyst Daniel Hynes noted in a Reuters-transmitted memo that recent escalation increases the likelihood of a prolonged confrontation involving measured military actions by both Washington and Tehran. He suggested this could restrict Gulf supplies throughout 2026. Goldman Sachs raised its year-end 2026 forecasts for Brent and WTI by five dollars to $85 and $80 respectively. For 2027, projections were lifted to $80 and $75 per barrel, reflecting sustained supply-side pressures.
This story was produced in the newsroom from the disclosed sources named above.
