Oil prices rose sharply on Wednesday as escalating tensions between the US and Iran raise concerns about further disruption to energy supplies from the Middle East. US benchmark West Texas Intermediate (WTI) crude futures for October delivery rose 1.75% to $94.66 a barrel on Wednesday. Brent crude, the international benchmark, gained 1.55% to $99.44.
The rise follows US strikes that destroyed five Iranian crude oil tankers on Tuesday after what Washington said were attempted attacks on an American warship.
US Central Command (Centcom) said the warship successfully evaded the Iranian attacks and that no US personnel were injured. The latest escalation has increased concerns that oil prices could rise above $120 a barrel if attacks on shipping continue, according to Daan Struyven, co-head of global commodities research at Goldman Sachs. Asked by CNBC whether oil could reach $120, Struyven said: “It’s definitely plausible.”
Goldman Sachs’ base case remains that Persian Gulf oil exports will gradually recover as producers adapt to disruption, including by using alternative shipping routes and eventually expanding pipeline capacity.
“The developments over the last few days do suggest that that alternative upside price scenario, where exports actually stagnate over the coming few months, and where Brent exceeds $120 is the probability of that scenario is definitely going up as we’re seeing an intensification and broadening of the shipping attacks,” Struyven added.
CENTCOM forces destroyed five Iranian crude oil carriers, Sept. 8, after the Islamic Revolutionary Guard Corps (IRGC) targeted a U.S. Navy warship with ballistic missiles twice over the past two days. The U.S. warship successfully evaded the attempted Iranian attacks and… pic.twitter.com/Gi8a2tloN1
— U.S. Central Command (@CENTCOM) September 8, 2026
US-Iran Tensions Escalate
US military action against Iran had been paused for about a month as Washington shifted towards economic pressure on Tehran, before strikes resumed towards the end of last month. Centcom said US forces struck four Iranian crude oil carriers in the Gulf of Oman and another near Kharg Island in the Persian Gulf.
It said the strikes came after Iran attempted to attack a US Navy vessel twice over two days. The American ship evaded the attacks and continued patrolling regional waters, Centcom said.
US forces instructed the crews of the Iranian vessels to abandon ship before the strikes, according to Centcom.
The attacks are part of a wider US strategy focused on the Strait of Hormuz, a key route for global energy supplies. Washington has also been carrying out escort operations for commercial vessels and maintaining a naval blockade of Iranian ports.
Iran responded by launching missiles towards Jordan, saying it was targeting Muwaffaq Salti Air Base, a facility used by US forces. Jordan’s military said its air defences intercepted 18 of the 20 ballistic missiles, while the other two landed in unpopulated areas. No casualties were reported.
Iran has also threatened to target oil tankers near ports in Bahrain and Kuwait, both of which host US forces. “We warn all crews aboard oil tankers in the vicinity of ports in Kuwait and Bahrain — which host these (American) terrorists and are partners in their hostile actions — to immediately leave their vessels, whether they are at anchor or docked at the ports, as the vessels will be targeted,” the Islamic Revolutionary Guard Corps (IRGC) said, according to state broadcaster IRIB.
Iranian reports said one of the tankers struck on Tuesday was about four miles from Kharg Island, a major hub for the country’s oil exports. Tasnim News Agency reported the location, while IRIB said a second tanker was hit off Jask, near the Gulf of Oman. The crews of both vessels were being taken ashore in lifeboats, it said.
US Secretary of State Marco Rubio warned that Washington would respond whenever Iran targeted American naval vessels. “Iran continues to try to hit US naval ships and for every time they do that, or try to do that, they’re going to lose tankers,” he told reporters during a visit to Colombia.
