European oil and gas shares moved higher on Tuesday as an escalation in the Middle East coincided with crude prices reaching their highest levels since late July.
Brent crude futures gained 2.1% to $99.93 a barrel by 04:09 ET (08:09 GMT), putting the international benchmark close to $100. U.S. West Texas Intermediate crude rose 1.4% to $94.31 a barrel.
The STOXX Europe 600 Oil & Gas Index advanced 0.8%, making energy one of the leading sectors within the broader European market.
Among individual companies, TotalEnergies (EU:TTE), Eni (BIT:ENI), Neste (TG:NEF) and Galp Energia (EU:GALP) gained between 1.2% and 1.9%. Maurel & Prom (EU:MAU) rose 0.8%, while Equinor (TG:DNQ) advanced 3.1% and Repsol (TG:REP) increased 2.1%.
UK-listed energy companies also moved higher, with Shell (LSE:SHEL) gaining 1.2% and BP (LSE:BP.) rising 1.8%.
The market moves followed a further escalation in the six-month conflict in the Middle East. Iranian-backed Houthi forces in Yemen carried out strikes on several Saudi cities, while U.S. forces struck multiple Iranian oil tankers. Iran also targeted a U.S. base in Jordan and shipping vessels.
The developments added to existing disruptions affecting Middle Eastern energy infrastructure and shipping routes, increasing uncertainty surrounding regional oil supplies.
Brent crude has risen by approximately 25% since early August as fighting in the region resumed and expectations for a lasting resolution to the conflict diminished.
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