Crude oil prices surged on Tuesday as renewed military action between the United States and Iran intensified concerns over possible disruptions to global oil supplies.
Brent crude gained $4.06, or 4.49 per cent, to trade at $94.55 per barrel, while US West Texas Intermediate climbed $4.44, or 5.18 per cent, to $90.20 per barrel.
Murban crude recorded an even stronger increase, rising $7.19, or 7.30 per cent, to $105.60 per barrel, according to Oilprice.com.
The latest rally followed fresh US air strikes against targets linked to Iran’s Islamic Revolutionary Guard Corps. The United States Central Command said the operation came after alleged attempts by the IRGC to attack commercial vessels in the Strait of Hormuz and US personnel stationed in the region.
The development has renewed concerns about the safety of shipping through the Strait of Hormuz, one of the world’s most important routes for crude oil transportation.
The market was already under pressure after military exchanges between Washington and Tehran over the weekend. Reports that two supertankers transporting Saudi crude were hit by unidentified projectiles while leaving the Strait further increased concerns about potential supply disruptions.
Brent futures, which had gained around two per cent earlier in the session, accelerated following the tanker reports.
Iran has also issued a warning that could further unsettle oil markets. Iranian Parliament Speaker Mohammad Baqer Qalibaf said the country would prevent oil exports from the Persian Gulf if the US continued its attacks.
The threat has raised fears that the conflict could spread beyond the two countries and disrupt crude exports from the wider Gulf region, home to some of the world’s largest oil producers.
The confrontation, which has lasted for about six months, had recently been characterised largely by sanctions, economic restrictions and blockades. The renewed military strikes have, however, increased concerns about a prolonged escalation.
US President Donald Trump has warned Tehran of a stronger response if Iran retaliates against the latest American attacks.
The US operation followed Iranian missile strikes against two American military bases in Jordan. Iran launched the strikes in response to an earlier US attack on Iran’s Larak Island.
Meanwhile, Washington is preparing additional sanctions against Tehran. US Treasury Secretary Scott Bessent said further restrictions targeting Iranian banks could be announced in the coming weeks.
The United States is also expected to target organisations and entities accused of conducting business with the Islamic Revolutionary Guard Corps.
