Oil prices advanced again on Tuesday, taking Brent crude closer to $100 a barrel as investors monitored Iranian warnings about potential retaliation against energy infrastructure and the implications for Middle East oil supplies.
November Brent futures rose 1.6% to $98.73 a barrel by 02:59 ET (06:59 GMT). U.S. West Texas Intermediate (WTI) futures increased 2.9% to $94.14 a barrel.
Brent had settled nearly 1% higher on Monday after briefly trading at $98 a barrel during the session.
Iranian Officials Warn of Potential Energy-Sector Retaliation
Iran has threatened to respond to what it described as U.S. “economic warfare” with a maritime exclusion zone across the Persian Gulf.
The statements followed further exchanges between the United States and Iran over the weekend, including attacks involving shipping.
Iranian officials subsequently warned that U.S. oil and gas interests and other energy infrastructure across the Gulf could be vulnerable to retaliation following attacks on Iranian assets.
“The oil and gas production chain here is sprawling, accessible, and exposed. American oil and gas companies across these waters and facilities share that exposure,” Iranian Parliament Speaker Mohammad Baqer Qalibaf said.
“Strike our assets, and you get struck. We’ve already proven it,” he added.
The comments describe potential Iranian retaliation and do not establish that attacks on those facilities will take place.
Hormuz Shipping Remains a Key Market Factor
Attention remains focused on the Strait of Hormuz and the potential effect of regional developments on oil shipments.
Iran has said it intends to introduce a new restricted zone in the Gulf alongside an alternative shipping corridor. Markets are monitoring whether those measures could affect tanker movements through the waterway. Shipping data for Monday showed seven commodity vessels transiting Hormuz, compared with eight the previous day.
Mohsen Rezaei, secretary of Iran’s Supreme National Security Council, said on X that Washington had received a “clear warning” from Iran’s new missiles. He also said further economic pressure would be met with a maritime exclusion zone extending across the Gulf to the perimeter of the U.S. blockade.
Iran separately said it was close to reaching an agreement with Oman concerning arrangements for the Strait of Hormuz. The supplied information does not indicate that a final agreement has been concluded.
Oil Benchmarks Extend Recent Gains
The latest increase follows a week in which Brent gained 8% and WTI advanced nearly 10% as markets assessed developments in the U.S.-Iran confrontation.
November Brent futures at $98.73 leave the international benchmark close to $100 a barrel.
Further price movements will depend on developments affecting regional oil production and shipping, as well as any progress in discussions concerning the Strait of Hormuz.
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