UK, Texas Industry Bodies Comment on Middle East Conflict

UK industry body Offshore Energies UK (OEUK) and the Texas Oil & Gas Association (TXOGA) have both issued statements on the ongoing conflict in the Middle East.

“Our first thoughts are with all civilians and those in military service and their families affected by the ongoing conflict across the Middle East,” Enrique Cornejo, OEUK’s Energy Policy Director, said in a statement released by OEUK.

“This includes over 300,000 UK nationals, many of whom work in offshore energy and began their careers in the North Sea,” he added.

“These events underline that energy security is national security, and UK production of domestic oil and gas is a vital strategic asset alongside renewables,” he continued.

“The reality is we need oil and gas for decades to come, and we should make the most of our own, rather than ramping up our reliance on imports,” he went on to state.

Cornejo noted in the statement that domestic oil and gas production “is essential for UK energy and national security”.

“It is more reliable, less carbon-intensive than imported LNG, and far less vulnerable to geopolitical disruption and secures billions of pounds in economic value and thousands of jobs at home,” he pointed out.

In a statement released by TXOGA, the industry body’s president, Todd Staples, also noted that “energy security is national security”.

“At a time when geopolitical tensions, including military action involving Iran, disrupt global energy supply routes, the United States and Texas provide stability,” he added.

“Americans can rest assured that the United States, led by Texas, has the capacity to respond because of unmatched production, robust pipelines and world-class refining and export infrastructure,” he continued.

“While price fluctuation often occurs during times like these, Texas energy helps to minimize volatility for American consumers and stabilize global markets,” Staples noted.

“American families and businesses, our military, and our allies abroad can depend on the reliable, affordable energy supply that starts here,” he highlighted.

In a statement sent to Rigzone on Monday, Morningstar said crude oil prices have increased sharply since the United States and Israel started their coordinated strikes on Iranian military targets on February 28, 2026.

“The higher crude prices reflect the increased political risk premium and potential disruption in supply as maritime authorities and carriers, in response to the conflict, have halted traffic through the Strait of Hormuz … which sees roughly 20 percent each of global crude oil and seaborne gas flows,” Morningstar highlighted in the statement.

Ravikanth Rai, Associate Managing Director of Energy & Natural Resources Ratings at Morningstar DBRS, said in the statement, “we believe there is too much uncertainty to determine if crude oil prices will remain high, and it is largely dependent on how the conflict plays out”.

“As such, there is no change to our midcycle pricing assumptions, so we are not currently contemplating any credit rating actions,” Rai added.

In a Morningstar statement sent to Rigzone later on the same day, Morningstar Equity Director Joshua Aguilar highlighted that the company is not changing its $65 per barrel Brent midcycle oil price.

“We think a plausible base case is that futures will remain elevated relative to our midcycle price but still trend downward,” Aguilar said in that statement.

In a market comment sent to Rigzone on Tuesday, Aaron Hill, Chief Market Analyst at FP Markets, highlighted that, even though both WTI and Brent ended higher yesterday, “buyers were on the front foot this morning”. 

“Evidently, a prolonged closure of the Strait would be bad news for oil prices; I have seen forecasts of north of $100 per barrel should this materialize,” Hill said.

“Though it is important to note that the current situation remains fluid and many scenarios are on the table,” Hill added.

In a market analysis sent to Rigzone on Monday, Abdelaziz Albogdady, Market Research & Fintech Strategy Manager at FXEM, highlighted that oil prices had “surged”, “opening with strong gains driven by the escalating geopolitical situation in the Middle East”.

“Markets are rapidly repricing supply risks following an escalation in tensions in the region, which led to disruptions in the Strait of Hormuz,” Albogdady added.

Albogdady warned in the analysis that crude prices are expected to remain volatile in response to further developments in the region.

To contact the author, email andreas.exarheas@rigzone.com