Oil Prices Surge on Escalating US-Iran Tensions

Oil prices rose for the second consecutive day on Tuesday as tensions between the US and Iran continued to escalate, threatening supply disruptions in the Middle East.

Brent crude increased by 55 cents or 0.61% to $91.04 per barrel, while WTI crude was up 79 cents or 0.92% at $86.55 a barrel around 7:30 am IST.

The latest price hike came after a sharp jump in the previous session, with Brent ending Monday 2.7% higher and touching its strongest level since August 25. WTI settled 2.8% higher on Monday, reaching its highest level since August 21.

The ongoing conflict has renewed concerns about supply disruptions, particularly around the Strait of Hormuz, which carried about a fifth of global oil supplies before the war began in late February. Iran closed the waterway after the US and Israel attacked the country on February 28.

Mediation efforts by Qatar and Oman to reopen the strait have so far failed to gain traction. The UK Maritime Trade Operations agency (UKMTO) reported that a tanker had been struck by three projectiles while sailing out of the strait, although there were no casualties or environmental impact.