Oil prices rise as US blockade on Iranian ports resumes
The price of a barrel of Kuwaiti crude oil rose by $10.48, reaching $87.94 per barrel in Tuesday trading, compared to $77.46 per barrel in last Monday’s trading, according to the price announced by the Kuwait Petroleum Corporation.
In global markets, oil prices rose on Tuesday morning as President Donald Trump reimposed a naval blockade on all Iranian ports, prompting Iran to launch attacks on U.S. infrastructure in the region.
Brent crude rose 58 cents, or 0.7 percent, to $85.31 per barrel, while West Texas Intermediate (WTI) crude increased by 35 cents, or 0.4 percent, to $79.69 per barrel. Oil prices at Tuesday’s settlement rose by approximately 2 percent, hitting their highest level in a month amid worsening supply disruptions in the Strait of Hormuz due to the attacks. Nearly one-fifth of global oil and liquefied natural gas (LNG) supplies previously passed through the strait before the outbreak of hostilities.
John Jow, chief oil analyst at Spartans Commodities, said: “Brent and WTI crude experienced upward corrections in line with escalating attacks, but the magnitude of these moves is likely to slow down now as the market awaits any changes in the stance of both the United States and Iran.”
Early Tuesday morning, the U.S. military announced the start of a new round of strikes “to continue weakening Iranian capabilities used to attack commercial vessels in the Strait of Hormuz.” Priyanka Sachdeva, chief market analyst at Philip Nova, said: “While the oil market still enjoys sufficient supplies, any further escalation concerning the Strait of Hormuz or the imposition of additional sanctions on Iranian exports could quickly pressure market sentiment and add further risk premiums.”
Tehran stated that it had re-blockaded the strait following renewed combat operations between Iran and the United States last week, further undermining the fragile ceasefire reached in June after months of fighting. Rising tensions over the past few days have increased doubts about whether the memorandum of understanding signed last month can achieve a permanent halt to the war that has affected Iran’s neighbors.
In an interview with Fox News broadcast on Tuesday evening, Trump said: “I will delay targeting energy facilities until the end, but we will ultimately strike them.” The Iranian military announced early Tuesday that it had launched drone attacks on U.S. positions at the Al-Asad airbase in Jordan. The Pentagon had not issued a comment as of press time.
The head of a Japanese industrial group said today that Japanese oil refining companies would diversify their supply sources while exploring ways to support oil producers in the Middle East, including projects to expand pipelines that bypass the Strait of Hormuz.
Shunichi Kito, president of the Japan Petroleum Institute, said at a press conference: “It is essential to find practical alternatives to crude oil transported through the Strait of Hormuz, rather than simply seeking alternatives for oil imports from the Middle East.”
He noted that given the current structure of Japanese refineries, which are better suited to Middle Eastern crude, it is difficult at present to handle large volumes of American crude oil.
Kito hopes that a package of energy flexibility measures, expected to be finalized by the end of August, will help ensure energy supply stability while enhancing industrial competitiveness.
He said that the oil sector, drawing lessons from the Iranian crisis, would seek to strengthen supply chains by deepening ties with oil-producing countries, securing tanker capacity, and enhancing refinery flexibility.
The UAE plans to accelerate the construction of a new oil pipeline to double its export capacity through the Fujairah port by 2027. Saudi Arabia is considering expanding the capacity of its pipeline leading to the western coast on the Red Sea.
Global liquefied natural gas (LNG) trade volumes rose by 5.4 percent to reach a record high of 56.3 billion cubic feet per day in 2025, driven by the expansion of LNG export capacity in the United States to meet growing global demand.
According to a report from the U.S. Energy Information Administration (EIA), U.S. LNG exports surged by 26 percent to reach 15.1 billion cubic feet per day, accounting for 26 percent of total global exports, compared to around 21 percent in 2024.
EIA forecasts indicate that U.S. LNG exports will continue to grow, reaching 17.4 billion cubic feet per day this year and approximately 18.6 billion cubic feet per day by 2027.
