Oil Price Today (August 12): Crude oil reclaims $90 again after fresh attacks on ships. What are experts saying?
Brent crude futures were up 72 cents, or 0.81%, at $89.63, while US West Texas Intermediate (WTI) crude gained 71 cents, or 0.85%, to $83.91.
On August 12, crude oil prices rebounded to $90 per barrel after attacks on shipping vessels in strategic Middle Eastern waters. Both Brent and US WTI crude futures rose by 0.81% and 0.85%, respectively.
The price surge came amid uncertainty over a potential US-Iran peace deal and the threat of further supply disruptions in the region. Iran's top security official, Mohsen Rezaei, threatened to keep the Strait of Hormuz closed unless the US agreed to Tehran's demands.
The attacks have raised insurance costs and forced ships to take longer routes, keeping energy flows under pressure. JPMorgan estimates an additional month of disruption could lift Brent crude by $7-$8 per barrel, potentially reaching $114 a barrel if the disruption lasts three months.
Goldman Sachs expects the Middle East tensions to ease eventually, with Brent averaging $80 a barrel in the fourth quarter and $75 a barrel next year. However, experts still anticipate a cool-down in oil prices by 2027 due to expanding non-conflict zone supply, OPEC+ raising production targets, and record output from the UAE and non-OPEC barrels.
Written by urgent.news from The Economic Times - Top News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
