US-Iran war: Oil prices rose on Tuesday as renewed tensions between the US and Iran in the Middle East heightened concerns over potential supply disruptions from the world’s major crude-producing region.
Brent crude futures climbed 56 cents, or 0.6%, to $91.05 a barrel, while US West Texas Intermediate (WTI) crude gained 83 cents, or 1%, to $86.59 a barrel.
The gains followed a strong performance in the previous session, when Brent settled 2.7% higher after touching its highest level since August 25. WTI also advanced 2.8% and briefly hit its highest level since August 21.
What’s driving crude oil prices today?
US President Donald Trump on Monday warned of additional strikes against Iran after the two countries exchanged direct attacks for the first time in a month on Sunday. The development has heightened tensions in the conflict, which had recently evolved into an economic standoff.
Meanwhile, the number of visible commodity vessels passing through the Strait of Hormuz fell to just five a day over the weekend, according to shipping data from Kpler. Efforts by mediators, including Qatar and Oman, to broker an agreement for reopening the strategic waterway have so far failed to make progress.
The Strait of Hormuz accounted for around one-fifth of global oil supplies before the conflict began in late February. Iran closed the waterway after the United States and Israel launched attacks on the country on February 28, disrupting a critical route for global energy shipments.
The risks to shipping and oil supplies remain elevated. The United Kingdom Maritime Trade Operations (UKMTO) said on Tuesday that a tanker reported being hit by three projectiles while departing the Strait of Hormuz. No casualties or environmental damage were reported in the incident.
Separately, Trump announced on Friday that the United States had reached a deal with Venezuela to gain control over the country’s oil reserves. He later said the arrangement would help replenish the US Strategic Petroleum Reserve, which is currently near a 44-year low.
Meanwhile, US companies Chevron and GE Vernova, India’s ONGC, Italy’s Eni and Colombia’s GeoPark are expected to finalise agreements in Venezuela following months of negotiations over energy projects in the OPEC member country, according to a Reuters report.
(With inputs from Reuters)
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
