MW Oil prices move back to multi-month highs as Iran war disrupts supply
By Jamie Chisholm
Goldman warns cost of crude could hit $100 a barrel
Foreign workers look at a tall plume of black smoke ascends following an explosion in the Fujairah industrial zone on March 3, 2026.
Oil prices were challenging multi-month highs again early Wednesday, as traders remained concerned that a widening conflict in the Middle East will hit energy supplies.
Brent crude, the global benchmark, rose 3% to change hands above $85 a barrel, close to its most expensive since the summer of 2024.
Brent (BRN00) had also climbed above $85 on Tuesday, but dipped later in the session after U.S. President Donald Trump suggested the U.S. Navy could escort tankers through the Strait of Hormuz.
The Strait is a crucial conduit thorough which most Persian Gulf production is transported.
However, the fresh gains for oil prices - with U.S. WTI crude (CL.1) adding 3% to near $77 a barrel - come as analysts argue Trump's pledge to help Strait traffic is not currently practicable, and there's a danger that Iran's targeting of the region's production facilities could further crimp supply.
On Wednesday, analysts at Goldman Sachs led by Daan Struyven, co-head of global commodities research, said that if volumes of oil from the Strait of Hormuz remain flat for five more weeks, Brent crude would likely extend to $100 a barrel.
Natural gas prices are also continuing to move higher following Qatar's decision to close its main liquid natural gas production facility amid attacks by Iran.
The Dutch TTF natural gas contract for April (TTFCJ26), on Wednesday rose 2% to EUR55.445 per megawatt hour, twice the level seen at the start of the year.
-Jamie Chisholm
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(END) Dow Jones Newswires
March 04, 2026 05:27 ET (10:27 GMT)
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