Oil prices rose on Tuesday as renewed fighting between the United States and Iran in the Middle East revived concerns over potential disruptions to supplies from a key global oil-producing region.
Brent crude futures rose 56 cents, or 0.6%, to $91.05 a barrel by 0044 GMT, while U.S. West Texas Intermediate (WTI) crude gained 83 cents, or 1%, to $86.59 a barrel.
In the previous session, Brent settled 2.7% higher after briefly reaching its highest level since Aug. 25. WTI rose 2.8% at settlement, reaching its highest level since Aug. 21.
U.S. President Donald Trump on Monday threatened further attacks on Iran following the first direct exchange of strikes between the two countries in a month on Sunday, adding to tensions in a conflict that has recently evolved into an economic confrontation.
“These developments bring the possibility of an Iranian response back into focus. That, in turn, raises the risk of damage to energy infrastructure around the Gulf and adds further uncertainty surrounding shipping through the Strait of Hormuz,” said Tim Waterer, a market analyst at KCM Trade. “Both risks are reflected in the stronger tone in crude prices.”
Shipping data from Kpler showed that the number of visible commercial cargo vessels passing through the Strait of Hormuz had fallen to five per day at the start of the week.
Efforts by mediators, including Qatar and Oman, to reach an agreement to reopen the Strait of Hormuz have made no progress so far. The waterway carried around one-fifth of global oil supplies before the war began in late February.
Iran closed the waterway after it was attacked by the United States and Israel on Feb. 28.
In another sign of continued risks to shipping and oil supplies, the United Kingdom Maritime Trade Operations agency said Tuesday that a tanker reported being struck by three projectiles while sailing outside the Strait of Hormuz. No injuries or environmental damage were reported.
Trump announced on Friday an agreement with Venezuela to take control of the country’s oil reserves and later said the deal would help replenish the U.S. Strategic Petroleum Reserve, which is approaching its lowest level in 44 years.
Five people familiar with the arrangements said U.S. oil major Chevron, General Electric Vernova, India’s ONGC, Italy’s Eni and Colombia’s GeoPark are expected to sign final agreements in Venezuela following months of negotiations over energy projects in the OPEC member state.
U.S. crude inventories in the Strategic Petroleum Reserve fell by about 3.1 million barrels last week to 286.6 million barrels.
Analysts polled by Reuters in August expect oil prices to remain above $80 a barrel in 2026 as shipping disruptions continue.
Source: Reuters
