SINGAPORE — Oil prices rose on Tuesday as investors assessed the impact of a second week of escalating hostilities between the United States and Iran, with concerns over potential disruptions to Middle East energy supplies continuing to support crude markets.
Brent crude futures gained around 0.5% to about $89.70 a barrel, while U.S. West Texas Intermediate (WTI) crude rose about 0.7% to around $83.82, according to market data reported on Tuesday. Prices remained elevated after Brent briefly moved above $90 a barrel in the previous session as fighting intensified and shipping risks increased in the region.
Market participants have focused on the security of key oil transit routes, particularly the Strait of Hormuz, a major passage for global energy shipments. Reuters reported that restrictions and disruptions linked to the conflict have raised concerns over the flow of crude from the Gulf, although the extent of any supply impact remains dependent on further developments.
The latest price moves came as diplomatic efforts continued alongside military exchanges between Washington and Tehran. Reports of mediation efforts aimed at securing a temporary ceasefire helped limit some of the gains in oil prices, while renewed attacks and threats affecting regional shipping kept pressure on markets.
Energy markets have also reacted to wider regional risks. Yemen’s Iran-aligned Houthi movement has threatened actions affecting Saudi Arabian shipping, adding to concerns that disruptions could extend beyond the immediate area of U.S.-Iran confrontation.
The rise in crude prices follows a sharp weekly gain last week, when Brent and WTI both advanced significantly as investors priced in the possibility of prolonged instability and reduced energy flows from the region. Reuters reported that Brent settled above $88 a barrel on July 17 after gains of more than 4% in that session.
Analysts have warned that sustained higher oil prices could increase inflation pressures and weigh on economic growth if supply disruptions continue, although concerns about weaker demand have also limited some market gains.
Investors were awaiting further developments from diplomatic contacts and military activity, with oil markets remaining sensitive to any changes affecting regional production, exports, or shipping routes.
