Oil prices climbed nearly 3% on Tuesday, reaching their highest level in four weeks as tensions between the United States and Iran increased and concerns grew over oil supplies through the Strait of Hormuz.
Brent crude rose $1.90 (2.3%) to $85.20 a barrel, while US West Texas Intermediate (WTI) gained $1.91 (2.4%) to $80.05 a barrel. Both benchmarks had earlier risen by more than $2 per barrel.
Oil prices have reached their highest level since the United States and Iran signed a memorandum of understanding on June 18.
The rise came after the US carried out a third straight night of strikes on Iran. US President Donald Trump also reinstated a blockade on Iranian shipping and proposed a 20% fee to protect the Strait of Hormuz.
Market analysts said the latest developments have increased uncertainty over global oil supplies. They warned that any major disruption to tanker traffic through the Strait of Hormuz could push oil prices even higher.
The UAE Ministry of Defence said two Iranian cruise missiles struck two UAE oil tankers in the Strait of Hormuz on Monday. One Indian crew member was killed and eight others were injured.
Shipping data also showed that tanker traffic through the Strait of Hormuz fell to its lowest level in two months.
Meanwhile, Yemen’s Houthi movement launched missiles toward Saudi Arabia after the Yemeni government carried out an attack on Sanaa International Airport.
Analysts said any further attacks on oil facilities or shipping routes in the region could create more uncertainty in global energy markets and keep oil prices under pressure.
