Oil prices extend gains as risks of a prolonged conflict in the Middle East grew after Iran threatened to retaliate against any new US attacks on its assets, heightening worries over supply disruption, according to Reuters.

Brent crude futures climb 34 cents, or 0.35 per cent, to $97.34 a barrel by 0000 GMT. US West Texas Intermediate crude was at $92.63 a barrel, up $1.15, or 1.26pc.

Brent rose to its highest level since July 24 in the previous session, as traders continued to build a risk premium into prices amid heightened tensions around the Strait of Hormuz, a key artery for global crude shipments.

“The recent escalation of the Middle East conflict has increased the likelihood of a prolonged standoff, punctuated by calibrated military action by the US and Iran. This could see Persian Gulf supply remain constrained through the rest of 2026,” Daniel Hynes, an analyst at ANZ, said in a note.

“We don’t expect a full return to pre-war throughput until late Q1 or early Q2 2027.”