Oil prices rise on Tuesday

Oil prices rose on Tuesday as renewed fighting between the US and Iran revived concerns over supply disruptions from the Middle East, a key crude-producing region.

Brent crude futures gained $1.18, or 1.3 per cent, to $91.67 a barrel at 0739 GMT, while US West Texas Intermediate crude rose $1.27, or 1.48 per cent, to $87.03.

US President Donald Trump on Monday threatened further strikes against Iran following the first direct attacks between the two countries since late July, escalating tensions after the conflict had shifted towards an economic standoff.

Iranian President Masoud Pezeshkian said on Tuesday that Tehran would immediately reciprocate if Washington returned to its commitments under an interim peace deal signed in June.

Mediation efforts by Qatar and Oman to reopen the Strait of Hormuz have so far been inconclusive. The waterway carried about a fifth of global oil supplies before the war began in late February.

The number of visible commodity vessels transiting the strait stood at about five per day on Monday, below the 10-day average of around 14, according to Kpler shipping data. None of the five vessels were liquid tankers.

The United Kingdom Maritime Trade Operations agency said on Tuesday that a tanker reported being struck by three projectiles while sailing out of the Strait of Hormuz, with no casualties or environmental impacts reported.

ANZ analysts said oil flows through Hormuz were around 6 million barrels per day, well below pre-conflict levels, while warning that global oil market buffers were becoming exhausted.

Reuters-pollled analysts in August expect oil prices to remain above $80 a barrel in 2026 as shipping disruptions continue.

Attribution: Reuters