Oil climbs past $90 as Middle East conflict keeps Strait
Oil climbs past $90 as Middle East conflict keeps Strait
Key Highlights
- Oil prices inched higher on Tuesday after renewed tensions between the US and Iran brought the risk of supply disruptions in the Middle East back to the forefront.Brent crude rose 55 cents, or 0.61%, to $91.04 while WTI crude was up 79 cents, or 0.92%, at $86.55 a barrel, around 7:30 am IST.The latest rise came after a sharp jump in the previous session.
- Brent ended Monday 2.7% higher, having earlier touched its strongest level since August 25.
- WTI settled 2.8% higher after reaching its highest since August 21.The renewed concerns followed the first direct exchange of attacks between the US and Iran in a month on Sunday.
Oil prices surged higher on Tuesday as tensions between the US and Iran reignited concerns over supply disruptions in the Middle East.
Brent crude rose 55 cents to $91.04 per barrel, a 0.61% increase, while WTI crude climbed 79 cents to $86.55 per barrel, up 0.92%, around 7:30 am IST.
The latest price hike followed a sharp surge in the previous session, with Brent reaching its strongest level since August 25 and WTI hitting its highest since August 21.
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US President Donald Trump's Monday threat of further strikes against Iran escalated tensions after the conflict shifted towards an economic standoff.
For oil markets, the Strait of Hormuz remains a key concern, with only five visible commodity vessels seen transiting the waterway over the weekend, according to shipping data from Kpler.
The strait, which previously carried about a fifth of global oil supplies, has been closed since Iran's response to US and Israeli attacks on February 28.
Mediation efforts were further underscored
Developments in Venezuela are also being closely watched as the US seeks to replenish its oil reserves, with Trump announcing a deal on Friday to control oil reserves in the country.
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The agreement is expected to help replenish the US Strategic Petroleum Reserve, which has fallen near a 44-year low, with crude inventories declining 6 million barrels last week.
Energy companies are moving forward with final agreements on projects in Venezuela, with Indian oil giant ONGC, Chevron and GE Vernova of the US, Italy's Eni and Colombia's GeoPark on track to sign deals after months of negotiations.
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I write about the forces shaping business and the global economy, from startup growth and changing markets to international trade and policy. My work focuses on breaking down complex developments into clear, practical insights and understanding what they could mean for businesses, investors, and the wider economy.
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