Crude Oil Prices Remain Volatile Amid US-Iran Tensions; Citi Warns Brent Could Hit $120 Per Barrel

Rising geopolitical tensions between the United States and Iran have kept global crude oil markets on edge, with analysts warning Brent crude prices could soon surge to $120 per barrel.

May 20, 2026 | New York

Global crude oil prices continued to witness sharp volatility amid renewed fears surrounding escalating tensions between the United States and Iran. Market analysts have warned that Brent crude prices may rise as high as $120 per barrel if supply disruptions in the Middle East continue in the coming weeks.

According to market reports, Brent crude has remained above the $110-per-barrel mark as investors closely monitor geopolitical developments, particularly around the Strait of Hormuz, a strategically crucial route that handles a significant portion of global oil shipments. Concerns over possible disruptions in oil transportation and military escalation have intensified uncertainty in energy markets worldwide.

Financial services firm Citi stated that global oil markets may be underestimating the risk of prolonged supply disruptions, warning that continued instability could push Brent crude towards the $120-per-barrel level in the near term. Analysts believe the market remains highly sensitive to developments in US-Iran diplomatic talks and military activity across the Gulf region.

Meanwhile, crude oil inventories in the United States have reportedly declined for the fifth consecutive week, adding further pressure to global supply concerns. Rising oil prices have also triggered fears of higher inflation across major economies, including India, which heavily depends on imported crude oil to meet domestic demand.

The impact of the ongoing crisis has extended beyond energy markets, affecting global equities, currencies, and bond markets. Several Asian and European stock indices have witnessed volatility as investors remain cautious over the possibility of a prolonged geopolitical conflict.

Energy experts have warned that if tensions remain unresolved and shipping disruptions continue in the Gulf region, fuel prices across multiple countries could rise further, increasing pressure on consumers and global economic growth. Markets are now closely watching diplomatic developments between Washington and Tehran for signs of stability.

Social media Handles :
Instagram
Youtube
Facebook
Twitter

Also Read- Pune