The US Energy Information Administration (EIA) has raised its oil price forecasts for this year and next year, as global stockpiles fall rapidly under pressure from the loss of Middle Eastern supply in the ongoing Iran war, Reuters reports.

The EIA now expects global benchmark Brent crude oil prices to average about $91 a barrel in the spot market this year, a nearly five per cent increase to its prior forecast for 2026.

US West Texas Intermediate crude prices are now expected to average $84.65 a barrel this year, the EIA says, also a nearly 5pc hike from its prior forecast.

The report was finalised on September 3, before the latest escalation of tensions in the Middle East.