Gulf Tensions Fuel Crude Oil Price Rally Amid Strait of Hormuz Shipping Risks

Crude oil prices continued their upward trend on Tuesday, reaching multi-week highs as tensions in the Gulf region escalated. Brent crude futures traded at $91.22 a barrel and U.S. WTI at $85.31 a barrel by 0827 GMT, marking a third consecutive session of gains.

The recent strength in crude prices is attributed to growing geopolitical risks and U.S. policy decisions. ING analysts noted that sentiment remained supported by US President Donald Trump's decision not to extend the US-Iran peace agreement and continued security concerns in the Strait of Hormuz.

Tensions in the region persist, with a projectile striking a vessel exiting the Strait of Hormuz on Tuesday. Yemen's Houthi movement also fired missiles at what it described as a Saudi military vessel and four accompanying ships in the Red Sea.