Oil extends gains as renewed US-Iran strikes fuel supply concerns

Oil prices rose on Tuesday as attacks between the United States and Iran resumed in the Middle East, renewing concerns about supply disruptions from the world’s key oil-producing region.

Brent crude futures rose $1.72, or 1.9%, to $92.21 a barrel by 10:46 GMT, while US West Texas Intermediate crude climbed $2.12, or 2.47%, to $87.88 a barrel.

US President Donald Trump threatened further strikes against Iran on Monday following the first direct exchange of attacks between the two countries since late July, escalating tensions in a conflict that had recently shifted toward an economic confrontation.

Iranian President Masoud Pezeshkian said on Tuesday that his country would respond immediately if the United States returned to its commitments under the temporary peace agreement signed in June.

Concerns over oil supply disruptions through the Strait of Hormuz

Efforts by mediators, including Qatar and Oman, have so far failed to secure an agreement to reopen the Strait of Hormuz, through which around one-fifth of global oil supplies passed before the war began in late February.

Two very large crude carriers carrying Saudi oil were struck by unidentified projectiles within minutes of each other on Monday while transiting the Strait of Hormuz.

Shipping data from Kpler showed that around five commodity vessels were seen transiting the Strait of Hormuz per day on Monday, below the 10-day average of around 14 vessels. None of the five vessels was a liquid tanker.

Analysts surveyed by Reuters in August expect oil prices to remain above $80 a barrel throughout 2026 as disruptions to shipping traffic persist.