Oil Prices Rise as US-Iran Fighting Revives Fears Over Middle East Supplies

Oil prices rose by about $1 on Tuesday as renewed fighting between the United States and Iran increased concerns about possible disruptions to crude supplies from the Middle East.

Brent crude futures gained $1.05, or 1.2%, to reach $91.54 a barrel at 7:55 a.m. Saudi time. US West Texas Intermediate crude rose $1.27, or 1.5%, to $87.03.

The gains followed a stronger session on Monday, when Brent settled 2.7% higher and briefly reached its highest level since August 25. WTI finished 2.8% higher after touching its strongest price since August 21.

Tensions increased after US President Donald Trump threatened further strikes against Iran following the first direct exchange of attacks between the two countries in a month on Sunday. The latest confrontation has raised concerns that the conflict could once again threaten oil infrastructure and shipping routes across the Gulf.

“These bring the potential for Iranian retaliation back into the equation,” said Tim Waterer, chief market analyst at KCM. He said the possibility of attacks on energy facilities around the Gulf and fresh uncertainty over shipping through the Strait of Hormuz were supporting crude prices.

Shipping activity through the Strait remains significantly below normal levels. Kpler data showed that only five visible commodity vessels passed through the waterway on Monday, compared with a 10-day average of about 14 vessels per day. None of the five ships was a liquid tanker.

Diplomatic efforts by Qatar and Oman to secure an agreement that would allow shipping through the Strait of Hormuz to resume have so far failed to produce a breakthrough. The waterway has been closed by Iran since the US and Israel launched attacks on the country on February 28.

The risks to vessels were highlighted on Tuesday when the UK Maritime Trade Operations agency reported that a tanker had been struck by three projectiles while sailing out of the Strait. No injuries or environmental damage were reported.

The Strait is crucial to global energy markets, with around one-fifth of the world’s oil supplies passing through it before the conflict began.

ANZ analysts said oil flows through the waterway were estimated at around 6 million barrels per day, well below pre-conflict levels. They also warned that supplies supporting the global market were becoming increasingly limited.

US Strategic Petroleum Reserve inventories fell by about 3.1 million barrels last week to 286.6 million barrels, adding to concerns about available buffers.

Reuters analysts surveyed in August expect oil prices to remain above $80 a barrel during 2026 as shipping disruptions continue to affect global supplies.