Oil rises 1% as Iran tensions deepen
- Brent crude rose 1% to $91.76 a barrel on Tuesday, while WTI gained $1.05 to $85.55 as Middle East supply concerns increased.
- Both benchmarks extended gains for a third session as U.S.–Iran peace efforts stalled and Washington ruled out extending a temporary ceasefire.
- Shipping through the Strait of Hormuz remains limited, while DBS expects near-term oil prices to trade between $80 and $100 while uncertainty persists.
Brent crude futures rose $0.89, or 1%, to $91.76 a barrel by 0641 GMT Tuesday, while U.S. West Texas Intermediate gained $1.05 to $85.55 as supply concerns increased.
Oil extended gains for a third session after Iran said it would adopt a more offensive military posture and the U.S. ruled out extending its temporary ceasefire agreement.
“Oil has jumped to start the week as U.S.-Iran relations look increasingly shaky,” said KCM Chief Market Analyst Tim Waterer.
Shipping risks remained elevated after a projectile struck a vessel leaving the Strait of Hormuz and Yemen’s Houthis said they launched missiles against Saudi-linked vessels in the Red Sea.
DBS Head of Energy Research Suvro Sarkar expects near-term oil prices between $80 and $100 while uncertainty persists.
Following the latest developments, Brent was up 1% at $91.76 and WTI was up $1.05 at $85.55.
Brent settled Monday up $2.35, or 2.65%, at $90.87 a barrel, while WTI gained $2.10, or 2.55%, to $84.50.
The Strait of Hormuz normally carries roughly one-fifth of global oil and liquefied natural gas flows, making continued restrictions a key supply risk for energy markets.
