Oil prices climbed to their highest level in a month on Tuesday as the United States and Iran intensified military attacks around the Strait of Hormuz, raising fears of disruptions to global energy supplies. The renewed escalation has increased uncertainty over crude shipments through one of the world’s busiest oil transit routes. Analysts warned that prolonged conflict could drive prices even higher.
Brent crude futures rose 1.8 percent to $84.80 per barrel, while US West Texas Intermediate gained 2.2 percent to $79.84. Both benchmarks had earlier surged by more than $2 a barrel before trimming gains. Brent also recorded its biggest daily increase since May 2020 during the previous trading session, reflecting heightened geopolitical concerns.
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The latest rally followed a third consecutive night of US strikes on Iran after President Donald Trump reinstated a naval blockade on Iranian shipping and proposed a 20 percent fee for vessels using the Strait of Hormuz. Market analysts said the renewed confrontation has significantly increased supply risks. They noted that any prolonged disruption to tanker movements could trigger another sharp rise in oil prices.
Concerns deepened after the UAE said two of its oil tankers were struck by Iranian cruise missiles in Omani waters, killing one Indian crew member and injuring eight others. Shipping data also showed tanker traffic through the Strait of Hormuz fell to its lowest level in two months. Analysts said the physical movement of crude through the waterway remains the key factor influencing market sentiment.
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Meanwhile, tensions elsewhere in the region added to supply concerns after Yemen’s Houthi movement launched missiles toward Saudi Arabia. Analysts warned that any expansion of attacks to Red Sea energy infrastructure could further disrupt crude flows. Investors are also watching US inventory data, with expectations that crude stockpiles declined while gasoline and distillate inventories increased last week.