Renewed conflict between the United States and Iran has reignited fears over global oil supplies, with analysts warning crude prices could remain elevated through 2027.
Renewed hostilities between the United States and Iran have reignited concerns over global energy security, sending oil prices sharply higher and reinforcing expectations that crude markets will remain under pressure well into 2027.
Market analysts say the latest escalation around the Strait of Hormuz has reversed the brief optimism that had eased supply concerns, with crude prices climbing as traders reassess the risks to one of the world's most critical energy shipping routes. Brent crude, the international benchmark, climbed to $84.84 per barrel on Wednesday afternoon, up 11.6% from $76.01 on Sunday.
Sarah Raffoul, Senior Analyst at Argus Media, said the market had underestimated how vulnerable global oil supplies remain to disruptions in the region.
"The brief optimism that pushed oil markets toward contango has evaporated, with renewed US Iran hostilities exposing how dependent global supply chains remain on the Strait of Hormuz and pushing crude prices sharply higher," Raffoul said.
