Oil Prices Surge as Tensions with Iran Escalate Strait of Hormuz Disruptions

Oil prices surged on Tuesday as tensions between the US and Iran escalated, raising concerns over disruptions to crude supplies from the Middle East. Brent crude futures rose 0.7% to $91.13 a barrel, while U.S. West Texas Intermediate crude gained 1% to $86.62.

The Strait of Hormuz, which handles about a fifth of global oil supplies, remains severely restricted due to ongoing conflict and shipping risks. Kpler data showed visible commodity vessel transits falling to just five a day over the weekend, highlighting the impact on oil shipments.

The latest rise in crude prices reflects renewed fears over physical supply and transportation safety from the region. Global oil markets have adapted to lower flows since the start of the conflict, but prolonged restrictions could tighten supplies further.