Oil markets nudged higher on Tuesday as renewed hostilities between the United States and Iran revived worries about disruptions to the world’s key crude‑producing region. Brent crude futures were up 56 cents, or 0.6%, to $91.05 a barrel at 0044 GMT, while U.S. West Texas Intermediate (WTI) rose 83 cents, or 1%, to $86.59.
President Trump’s warning adds to market uncertainty
President Trump warned of additional strikes against Iran following the first direct exchange of attacks between the two nations in a month on Sunday. “These bring the potential for Iranian retaliation back into the equation,” said Tim Waterer, chief market analyst at KCM. “That in turn raises the prospect of damage to energy infrastructure around the Gulf and adds fresh uncertainty for shipping through the Strait of Hormuz. Both of those risks are being reflected in the firmer tone in crude prices.”
Shipping traffic in the Strait of Hormuz declines
Data from maritime analytics firm Kpler showed that the number of visible commodity vessels transiting the Strait of Hormuz fell to five per day over the weekend, a sharp drop that underscores the heightened risk environment. The United Kingdom Maritime Trade Operations agency (UKMTO) reported that a tanker was struck by three projectiles while exiting the strait, though no casualties or environmental damage were reported.
Efforts to reopen the strait have stalled
Regional mediators, including Qatar and Oman, have been working to broker a deal to reopen the waterway, which historically carries about one‑fifth of global oil supplies. Their attempts have yet to gain traction, and Iran continues to keep the strait closed after the U.S. and Israel launched attacks on February 28.
U.S. energy strategy moves forward in Venezuela
On Friday, President Trump announced a deal with Venezuela to control the South American nation’s oil reserves, a move he said would help replenish the U.S. Strategic Petroleum Reserve, which sits near a 44‑year low. U.S. companies Chevron and GE Vernova, along with India’s ONGC, Italy’s Eni and Colombia’s GeoPark, are on track to sign final agreements in Venezuela after months of negotiations.
U.S. Strategic Petroleum Reserve inventories fell by about 3.1 million barrels last week, leaving total stockpiles at 286.6 million barrels.
Analysts expect prices to stay above $80
Reuters‑polled analysts in August projected that oil prices would remain above $80 a barrel throughout 2026 as shipping disruptions persist. The market’s sensitivity to geopolitical developments in the Middle East suggests that any further escalation could push prices higher, impacting both consumers and businesses across the nation.
While the immediate price moves are modest, the broader implication is clear: renewed conflict in the Gulf threatens the stability of global energy supplies, and the Trump administration’s firm stance aims to protect American energy security while supporting allies in the region.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
