Trump Threatens Further Iran Strikes, Oil Prices Rise Amid Strait of Hormuz Concerns

Oil prices continued their upward trend in Asian trading on Tuesday as US President Donald Trump threatened further strikes against Iran, raising concerns about prolonged disruptions to energy flows through the Strait of Hormuz.

The latest escalation came after US forces struck Iranian military targets on Larak Island, ending a weeks-long lull in direct attacks. In response, Iran launched missiles at US military facilities in Jordan, prompting Trump to pledge a strong response and fueling fears that fighting could further threaten shipping through the critical waterway.

The Strait of Hormuz remains the market's central concern, with the passage serving as a key export route for crude and petroleum products from major Middle Eastern producers. A tanker was struck by three unidentified projectiles on Monday while exiting the strait, according to a warning from the United Kingdom Maritime Trade Operations agency, underscoring the continued risks to commercial shipping in the region.

Meanwhile, supply concerns have partly overshadowed efforts by OPEC+ producers to increase output. The group had approved an additional production quota increase of about 188,000 barrels per day from September, completing the planned rollback of earlier voluntary cuts. Russia's decision over the weekend to extend its diesel export ban until Sept. 30 also added to concerns over refined fuel supplies.