Analysts predict oil prices will spike due to looming U.S. action against Iran

Bob McNally, CEO of Rapidan Energy Group, is warning that the U.S. could resume military action against Iran in the coming days. Speaking on CNBC's 'Squawk Box Asia,' McNally put the odds of renewed fighting at a steep 80% as the U.S. midterms wrap up. He forecasts both Brent and West Texas Intermediate crude futures will shoot above $100 a barrel.

McNally stressed that President Donald Trump remains determined to prevent Iran from acquiring nuclear capabilities. He argues the Iranian regime is unwilling to comply, keeping the escalation dynamic firmly in place. Washington has already carried out limited strikes, according to reports from The Wall Street Journal.

The diplomatic landscape is complex, though. While some analysts see the end of the 'lame duck' period as a window for Trump to strike, others believe the midterms may favor a diplomatic off-ramp. This possibility grew after Iran reportedly sent a nuclear proposal through Qatar, provided Washington meets seven specific demands.

On the political front, Iranian Parliament Speaker Mohammad Bagher Ghalibaf took aim at U.S. Vice President JD Vance on social media. Ghalibaf blasted Vance, describing his comments as having 'losing gambler energy' and accusing the Trump administration of prepping the next stage of conflict. Vance, meanwhile, recently cited the war with Iran as a key reason for Republicans' midterm losses.

This growing energy crisis is feeding broader concerns. The conflict has already contributed to higher global energy costs, directly impacting inflation and the cost of living around the world.

Rapidan Energy Group's warnings align with other experts, such as Lombard Odier's Samy Chaar and Luca Bindelli, who noted that renewed campaigns could face limitations from U.S. munitions supplies.