Oil prices extended their gains on Thursday as escalating tensions between the U.S. and Iran raised fresh concerns over potential disruptions to Middle Eastern energy supplies.

November Brent crude futures gained 0.62% to $101.84 per barrel, remaining above the key $100 level. U.S. West Texas Intermediate (WTI) futures for October rose 1.01% to $96.06 per barrel, continuing their recent rally.

Geopolitical tensions intensified after the U.S. military destroyed five Iranian crude oil tankers on Tuesday in response to attempted attacks on an American warship. According to U.S. Central Command, the vessel successfully avoided the attack and no American personnel were harmed.

The latest escalation has increased concerns about the security of regional shipping routes and the potential impact on global oil supply. With the U.S.-Iran conflict now entering its seventh month, further attacks on vessels or energy infrastructure could tighten physical crude supplies and add more upward pressure to prices.

Goldman Sachs has warned that oil could potentially climb above $120 per barrel if attacks on shipping intensify. At the same time, reports that the conflict could remain prolonged are adding to uncertainty around the outlook for Middle Eastern energy flows.

Oil prices have already recovered significantly from their earlier declines. WTI has erased its losses from June and July, while Brent has moved well above levels seen in early June. Markets are now closely watching for further developments in the region and any signs of additional disruption to crude transit volumes.

Disclaimer: The information contained herein (1) is proprietary to BCR and/or its content providers; (2) may not be copied or distributed; (3) is not warranted to be accurate, complete or timely; and, (4) does not constitute advice or a recommendation by BCR or its content providers in respect of the investment in financial instruments. Neither BCR or its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.