Hostilities across the Middle East have escalated, with Tehran stating it is fully prepared for a more extensive war, stoking fresh concerns over potential severe disruptions to energy flows through the Strait of Hormuz. In response, Brent crude futures have moved close to the $102-per-barrel mark, as the global benchmark extended its winning streak to a fifth consecutive session, closing above the triple-digit threshold for the first time since last July on Wednesday.

Meanwhile, West Texas Intermediate (WTI) crude is hovering near $97 a barrel. According to a senior official from the Islamic Republic, Iran has no intention of yielding in the face of a U.S. naval blockade, and it will escalate its attacks should Washington continue to strike its territory. The renewed exchange of fire over the past week has ended a period of relative calm and driven oil prices higher.

U.S. President Donald Trump has projected that the war will not conclude until after the November midterm elections, with no notable decline in gasoline prices expected before then, signaling that a de-escalation in the seven-month-long conflict is highly unlikely in the near term. The United States is attempting to cripple Iran's economy through a maritime blockade, which has already led to a sharp reduction in Iranian oil exports. Concurrently, Washington has threatened sanctions against governments and businesses that fail to sever ties with Tehran.

The Iranian official acknowledged the mounting economic strain but asserted that the leadership sees no alternative but to continue fighting until they are convinced that Washington will be too deterred to launch another attack. Reports citing U.S. officials highlight that White House advisors, including Vice President J.D. Vance, have privately cautioned President Trump that the conflict with Iran could extend well beyond his current term. Such a scenario would further deplete American military resources and heighten the risk of a prolonged interruption to Middle East energy supplies.

Concerns over a protracted conflict have fueled gains in energy prices. Brent crude has surged nearly 70% this year, although it remains below the wartime peak of $126 per barrel recorded in April. Refined products like diesel have posted even more significant gains in 2026 due to recent hostilities, reflecting supply risks stemming from both the Middle East conflict and the Russia-Ukraine war. Brent for November delivery edged up 0.2% to $101.38 a barrel, while WTI for October delivery rose 0.6% to $96.70.