Shares of Australian energy companies such as Beach Energy (ASX:BPT), Santos (ASX:STO), and Woodside Energy (ASX:WDS) could gain from a lift in oil prices after Saudi Arabia warned overproducers within the OPEC+ and amid escalating tensions between Iran and Israel.

Saudi Arabian oil minister Prince Abdulaziz bin Salman warned members of the OPEC and its allies during a conference call last week that prices could drop to as low as $50 per barrel if members continue to disregard the oil cartel's production limits, The Wall Street Journal reported Wednesday, citing unnamed delegates in the oil cartel who attended the call.

The cartel did not immediately respond to a request for comment from MT Newswires.

The Saudi minister reportedly singled out Iraq and Kazakhstan for not complying with the agreed production caps put in place to lift prices. Other producers saw the statement as a veiled threat from Saudi Arabia that it was willing to engage in a price war, according to the report.

This comes as markets weigh the rising conflict between Israel and OPEC member Iran. The oil cartel is said to have enough capacity to make up for any output losses if Israel attacks Iran's oil facilities given the alliance's production curbs in recent years, Reuters reported Wednesday.

Brent crude oil was trading $73.90 per barrel on the ICE Futures Exchange.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)