Oil holds near 6-week high, rises around $98

Oil rose for the third day running on Tuesday and hovered close to six-week peaks, according to Mettis Global. Brent crude futures rose 0.20% to $97.58 a barrel, while WTI gained $1.63, a 1.49% increase, to $92.97 a barrel. The move reflects rising concern that US-Iran tensions could prolong disruption across the Middle East.

The flare-up followed a Saturday attack by US forces on three Iranian oil tankers, which came after Iran launched ballistic missiles at two US Navy warships. Iran's Foreign Ministry condemned the strikes on merchant vessels as a war crime and economic warfare, and the exchange also pushed gas prices to record levels. On Monday, Iranian Parliament Speaker Mohammad Bagher Ghalibaf warned Iranian assets would be targeted in retaliation, after US Defense Secretary Pete Hegseth said the US would sink Iranian tankers if Iran attacked US vessels.

Goldman Sachs expects disruption to Middle East shipping to last into 2027, with oil production recovering gradually later in the year. The bank said investors are increasingly pricing in a long-running conflict, and tanker rates from the Persian Gulf to China suggest the disruption could run until Q2 2027. President Donald Trump said on Monday that oil prices would fall sharply once the US wins its war with Iran.