Oil Prices Surge as Mideast Tensions Escalate

Oil prices rose on Tuesday as fighting between the US and Iran in the Middle East revived fears of supply disruptions from the world's key crude-producing region.

The resumption of direct attacks between the two countries raised tensions, with US President Donald Trump threatening further strikes against Iran. This brought back into play the risk of Iranian retaliation, potentially damaging energy infrastructure around the Gulf and affecting shipping through the Strait of Hormuz.

Brent crude futures were up 66 cents, or 0.7%, to $91.15 a barrel at 0640 GMT, while US West Texas Intermediate crude was up 70 cents, or 0.8%, to $86.46. The previous session saw Brent close up 2.7% and WTI settle up 2.8%. Analysts expect oil prices to remain above $80 a barrel in 2026 due to ongoing shipping disruptions.

A tanker reported being struck by three projectiles while sailing out of the Strait of Hormuz, although no casualties or environmental impacts were reported. The UK Maritime Trade Operations agency highlighted the risks still present for shipping and oil supply, with efforts to reopen the Strait of Hormuz having so far failed to gain traction.