US-Iran Tensions Spark Oil Price Surge Amid Strait of Hormuz Concerns

Oil prices continued to rise on Tuesday as tensions between the US and Iran intensified. The situation in the Middle East has become increasingly volatile, raising concerns about energy supplies from the region.

The Brent crude futures price gained $0.62, or 0.7%, reaching $91.49 per barrel. Meanwhile, U.S. West Texas Intermediate crude rose by $0.75 to $85.25 per barrel.

KCM chief market analyst Tim Waterer attributed the high oil prices to worsening relations between Washington and Tehran. The situation in the Strait of Hormuz remains a key factor, with shipping volumes through the strait remaining low.

DBS Bank's head of energy research, Suvro Sarkar, believes that the lack of a political agreement could affect market expectations not only in the fourth quarter but throughout 2027 as well.