Oil prices advanced sharply during Asian trading on Tuesday, with Brent crude staying above the $100-per-barrel level as markets remained concerned about potential supply disruptions tied to the ongoing U.S.-Israel conflict with Iran.
Crude benchmarks rebounded after sliding roughly 5% in the previous session, following reports that some vessels had successfully navigated the Strait of Hormuz. Nevertheless, the vital shipping corridor remains largely restricted, and U.S. efforts to secure allied support for policing the waterway have met limited response.
By 00:58 ET (04:58 GMT), Brent crude futures had climbed 2.8% to $103.01 per barrel, while U.S. West Texas Intermediate futures rose 2.6% to $95.54 per barrel.
Iran conflict intensifies as Hormuz shipping remains constrained
Clashes involving the United States, Israel and Iran showed little sign of easing on Tuesday, with the conflict entering its third week.
Iran warned it could target U.S.-linked industries across the Middle East after the United States and Israel carried out strikes last week on Kharg Island, one of Iran’s key oil export terminals.
During the early hours of Tuesday, Iran and Israel exchanged fresh air strikes, while drones and rockets were also launched toward the U.S. embassy in Baghdad.
Over the weekend, U.S. President Donald Trump called on several countries, including China, to assist in restoring shipping through the Strait of Hormuz. However, his appeal gained little traction, with several American allies saying they had no immediate plans to send naval forces to the region.
The control of the strait has become a focal point of the conflict, as approximately 20% of the world’s oil supply passes through the narrow waterway. Iran had effectively closed the route earlier this month.
Still, reports on Monday indicated that some liquefied gas tankers flying Indian and Pakistani flags managed to transit the strait. Iran had previously indicated it might allow vessels from certain countries to pass while targeting ships linked to the United States and its allies.
Oil prices have climbed significantly since the conflict began, supported by fears that disruptions to supply could persist. Many Asian economies depend heavily on crude shipments transported through the Strait of Hormuz.
The inflationary impact of the conflict has also become a key concern for markets, as higher energy prices could push global central banks toward tighter monetary policy.
Several major central banks—including the Federal Reserve, the European Central Bank and the Bank of Japan—are scheduled to hold policy meetings later this week.
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