London (TDI): Oil prices climbed to their highest level in a month on Tuesday after the United States intensified military operations against Iran and reinstated its naval blockade, raising fresh concerns over global energy supplies through the Strait of Hormuz.
Brent crude futures rose $1.50, or 1.8%, to $84.80 per barrel by 0330 GMT, while US West Texas Intermediate (WTI) crude gained $1.70, or 2.2%, to trade at $79.84 per barrel.
Both benchmark contracts had earlier surged by more than $2 a barrel before trimming gains. Brent also recorded a 9.6% jump in the previous session, its biggest single-day increase since May 2020.
The latest gains pushed oil prices to their highest levels since Washington and Tehran signed a memorandum of understanding on June 17 aimed at ending months of conflict.
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The market rally followed a third consecutive night of US airstrikes on Iranian targets, while President Donald Trump announced the restoration of a blockade on Iranian shipping and proposed imposing a 20% security fee on vessels transiting the Strait of Hormuz.
Tensions escalated further after two UAE-linked oil tankers were struck by Iranian cruise missiles in Omani waters along the southern lane of the Strait of Hormuz, according to the UAE Ministry of Defense. The attack killed one Indian crew member and injured eight others, including six Indians and two Ukrainians.
Shipping data also indicated that tanker traffic through the Strait of Hormuz fell to its lowest level in two months, highlighting growing concerns among global shipping operators.
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Meanwhile, regional tensions widened after Yemen’s Houthi movement launched missiles towards Saudi Arabia, accusing Riyadh of carrying out airstrikes on an airport under Houthi control.
Investors are also awaiting weekly US inventory data, with analysts expecting American crude stockpiles to have declined last week, a development that could provide additional support to oil prices.
