Oil extends gains, with Brent above $101 after U.S. destroys Iranian oil tankers

• Brent crude futures gained 0.62% to $101.84 per barrel, while U.S. crude advanced 1.01% to $96.06, fully unwinding selloffs from June-July
• Goldman Sachs warns that intensifying shipping attacks could push oil prices above $120 per barrel as the conflict tightens physical markets
• White House advisers have privately told President Trump the Iran conflict could persist through the remainder of his term, according to the Wall Street Journal

Oil Market Summary: U.S.-Iran Tensions Drive Prices Above $100

Key Price Movements:

• Brent crude for November delivery rose 0.62% to $101.84 per barrel
• WTI crude for October gained 1.01% to $96.06 per barrel
• Both benchmarks have recovered from early June-July selloffs

Major Developments:

The U.S. military destroyed five Iranian oil tankers on Tuesday in retaliation for attempted attacks on an American warship. No U.S. personnel were harmed in the incident. The U.S.-Iran conflict, now in its seventh month, continues to escalate with intensifying attacks on shipping in the strategically vital Strait of Hormuz region.

Market Implications:

Goldman Sachs warns that oil prices could surge above $120 per barrel if shipping attacks intensify. According to Daan Struyven, co-head of global commodities research at Goldman Sachs, the escalating conflict poses significant upside risk to current price levels.

The Wall Street Journal reports that President Trump's top advisers have privately discussed the possibility of the Iran conflict extending through the remainder of his presidential term, suggesting prolonged market uncertainty.

Supply Concerns:

Industry analysts note that physical oil markets may tighten further due to declining transit volumes through affected shipping lanes, broader regional escalation, or potential threats to energy infrastructure. The Strait of Hormuz remains a critical chokepoint for global oil supply, with numerous merchant vessels from Iran and other countries anchored in the area.

Bottom Line:

Geopolitical risk premiums are driving oil prices higher, with further upside potential if Middle East tensions continue to escalate or disrupt shipping operations.