Oil Prices Rise Amid Renewed Middle East Tensions
Oil prices surged by around $1 on Tuesday as renewed tensions in the Middle East heightened concerns of supply disruptions from the region's key crude-producing countries.
The price increase, driven by Brent crude futures rising 1.2% to $91.54 a barrel and US West Texas Intermediate crude increasing 1.5% to $87.03, reflects fears of further attacks on energy infrastructure in the Gulf.
US President Donald Trump's threat of additional strikes against Iran following the first exchange of direct attacks between the two countries on Sunday has raised tensions in a conflict that had shifted into an economic standoff. Tim Waterer, chief market analyst at KCM, noted that 'these bring the potential for Iranian retaliation back into the equation,' which could damage energy infrastructure and disrupt shipping through the Strait of Hormuz.
The number of visible commodity vessels transiting the Strait has dropped to just five per day, below the 10-day average of around 14, according to shipping data from Kpler. The UK Maritime Trade Operations agency reported that a tanker was struck by three projectiles while sailing out of the Strait, although no casualties or environmental impacts were reported.