Oil prices climbed sharply on Tuesday as renewed tensions surrounding the Iran conflict and slowing tanker traffic through the Strait of Hormuz increased concerns about disruptions to global crude supplies.
Brent crude futures rose 27 cents, or 0.3%, to $91.14 a barrel, while US West Texas Intermediate (WTI) gained 42 cents to $85.04. WTI had earlier reached $85.37, its highest level since July 31.
Market sentiment remained tense after Iran indicated a shift toward a more offensive military posture, while Washington ruled out extending a temporary ceasefire. Concerns have also grown over the slow reopening of the Strait of Hormuz, one of the world’s most important energy shipping routes.
Only a small number of commodity vessels crossed the strategic waterway over the weekend, significantly below normal traffic levels. Shipping concerns were further intensified by attacks in the Red Sea, raising fears of disruptions around both the Strait of Hormuz and Bab el-Mandeb.
The latest increase follows gains recorded on Monday, when Brent crude rose as much as 1% to $89.40 a barrel before settling higher. WTI also advanced during the session.
Both benchmarks had already gained more than 5% the previous week following attacks involving energy and shipping assets in and around the Strait of Hormuz. The developments have increased the geopolitical risk premium in global oil markets.
Hormuz Shipping Disruptions Raise Supply Concerns
Ship-tracking data showed a sharp decline in commodity vessel traffic through the Strait of Hormuz over the weekend. According to Kpler data cited in market reports, only five commodity vessels crossed the waterway on Saturday, while none were recorded on Sunday, compared with 31 crossings during the previous weekend.
The slowdown has raised concerns that prolonged disruption could affect the movement of crude oil and petroleum products, while also increasing transportation and insurance costs.
The United Arab Emirates has also accused Iran of attacking an ADNOC-operated vessel while it was travelling through the strait. The allegations have added to concerns that the conflict could increasingly affect commercial shipping and energy infrastructure.
US-Iran Diplomacy Remains Key Market Factor
Despite the heightened tensions, reports of possible back-channel contacts between Washington and Tehran have provided a limited source of optimism for markets.
Iranian Foreign Minister Abbas Araqchi has indicated that Tehran had yet to decide whether negotiations with the United States would resume, while US President Donald Trump warned Americans to prepare for higher gasoline prices if the conflict continues.
Traders are now closely watching diplomatic developments, shipping activity through Hormuz and US crude inventory data.
A renewed diplomatic breakthrough could ease the geopolitical risk premium and push oil prices lower. However, further attacks on tankers, energy facilities or critical infrastructure could cause another sharp increase in crude prices.
For now, the oil market remains highly sensitive to developments in the Iran conflict and the security of the Strait of Hormuz.
