US-Iran Tensions Send Oil Prices Soaring Amid Strait of Hormuz Disruptions

Oil prices surged on Tuesday due to heightened concerns over supply disruptions caused by US-Iran tensions and Strait of Hormuz disruptions. According to ING analysts, market sentiment remained underpinned by President Donald Trump's decision not to extend the US-Iran peace agreement.

The current standoff between the two nations led to a 0.4% rise in Brent crude futures to $91.22 per barrel and a 1.0% increase in U.S. West Texas Intermediate crude futures to $85.37 per barrel.

Commercial traffic through the Strait of Hormuz remained at a fraction of pre-war levels, as fears of Iranian attacks largely discouraged attempted crossings. A vessel was struck by an unknown projectile while transiting outbound in the strait, causing damage to the engine room and a crew casualty.