RBC: Oil may cross $128 as war risks escalate

Analysts at RBC Capital Markets warned that oil prices could surpass $128 per barrel as the conflict between the United States and Iran enters a more dangerous phase, posing a continued threat to Middle East supplies.

Helima Croft, head of global commodity strategy at the investment bank, said escalating pressures in the region could push Brent crude past the $128-per-barrel peak reached following the outbreak of the Russia-Ukraine war in 2022.

She noted in a report released Wednesday that prices could even approach the 2008 record high of $146 per barrel if the situation devolves into a full-scale regional war.

Croft added that risks are not limited to the Middle East, as Ukraine has intensified attacks on the Russian oil sector, pointing out that Kyiv targeted more than 150 tankers in the Black Sea and the Sea of Azov during July.