Crude oil prices surged sharply on Tuesday, with Brent crude climbing above $95 per barrel as renewed military tensions between the United States and Iran heightened fears of potential disruptions to oil supplies from the Middle East.
Brent crude, the international benchmark, rose 5.38 per cent to settle at $95.36 per barrel, while US West Texas Intermediate (WTI) gained 5.95 per cent to close at $90.86 per barrel.
The latest rally pushed Brent to its highest level since July 24 and WTI to its strongest level since July 23, reflecting growing concerns among investors over the possibility of a broader escalation in the conflict.
According to Reuters, the price increase followed fresh military exchanges between Washington and Tehran. The United States launched new air strikes against Iranian targets on Tuesday, raising fears that the conflict, which has continued for about six months, could intensify.
US President Donald Trump had on Monday threatened further military action against Iran after the two countries exchanged direct attacks for the first time in a month.
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Trump also claimed that US air defences had intercepted all Iranian missiles capable of causing significant damage, while maintaining that recently imposed US economic sanctions were putting considerable pressure on Tehran.
Iran responded with overnight missile attacks on two US military bases in Jordan. The strikes came after a US attack on Larak Island, which Washington said targeted Iranian launchers allegedly involved in laying mines in the Strait of Hormuz.
The Strait of Hormuz is one of the world’s most important routes for global oil shipments. Any disruption to traffic through the strategic waterway could have significant consequences for energy markets and potentially push crude prices even higher.
Analysts and traders are therefore closely watching developments between the United States and Iran. A prolonged disruption to crude production or shipping in the region could place further upward pressure on global oil prices and increase concerns over energy security.
