Oil climbs Monday as tanker attacks and Saudi airport strikes deepen Mideast escalation; Goldman raises December Brent forecast to $90
What happened
Oil prices extended gains in Monday's early Asian trading after a weekend of Middle East escalation. Yemen's Iran-backed Houthis stepped up strikes on Saudi Arabia, claiming a Saturday strike on Riyadh's international airport that killed 13 people and wounded more than 300, while Saudi authorities reported injuries in a second airport attack on Sunday. The United Kingdom Maritime Trade Operations Center reported two tankers attacked over the weekend — one struck by a drone near Oman's Sohar anchorage, another damaged by an unknown projectile while transiting the Strait of Hormuz. Brent crude rose 0.73% to $105.48 a barrel and WTI gained 0.64% to $92.44. Goldman Sachs analysts led by Daan Struyven raised the firm's December Brent forecast to $90 a barrel from $85, estimating the market carries a risk premium of just over $20 a barrel.
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Start your free 14-day trialWho’s affected
- Energy sector and crude futures (XLE
- Brent $105.48, WTI $92.44) — direct beneficiaries of a higher risk premium. U.S. refiners and diesel-import plays face headline risk as Trump's Russian diesel waiver draws bipartisan legal objections. Airlines, cruise lines and transport face higher fuel costs. The broad equity market faces an inflation headwind: rising energy costs are expected to push Wednesday's CPI up 0.6% month-on-month to 3.7% annualized (JPMorgan), firming the ~85% market-implied odds of a December Fed hike.
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