Oil prices rise for 4th day as US & Iran continue attacks in West Asia

Oil prices rose for a fourth straight day on Thursday as the conflict in West Asia continued to escalate, with Brent crude gaining 0.4 per cent to $85.28 a barrel, close to the one-month high it reached earlier this week.

US West Texas Intermediate (WTI) crude futures rose 0.5 per cent to $80.02 a barrel.

Both benchmarks gained about 0.3 per cent on Wednesday and remained near the one-month highs touched on Tuesday.

WTI could rise to $85-$87 a barrel depending on how the US-Iran war evolves, Hiroyuki Kikukawa, chief strategist at Nissan Securities Investment, told Reuters.

The price movement of Brent crude futures in July 2026. (Data: Perplexity Finance)

Oil prices have surged since the fragile US-Iran ceasefire collapsed last week. For five consecutive days, the United States has bombed the Islamic Republic, and Iran has attacked American bases and troops across West Asia, striking Jordan, Bahrain, and Kuwait.

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The movement of oil and gas through the Strait of Hormuz has effectively ground to a halt after Iran declared the waterway closed. Iran has been targeting ships transiting the Strait on routes other than the one it has designated.

Around 20 per cent of the world's oil and gas supplies pass through the Strait. With the waterway closed, countries such as Iraq, Kuwait, and Qatar have been cut off from global energy markets. Energy security concerns have been compounded by threats from the Iran-backed Houthis in Yemen to close the Bab al-Mandab Strait, a route used by Saudi Arabia to export part of its oil output while bypassing the Strait of Hormuz.

Goldman Sachs has said Brent crude could exceed $110 a barrel in the fourth quarter if the recovery in Gulf exports continues to stall. But it could fall into the $60s by the end of the year if tensions ease and production rebounds more quickly than expected.