Oil Rises on Renewed Middle East Supply Disruption Fears - Sarmad

Oil prices rose on Tuesday as fighting between the United States and Iran resumed in the Middle East, reviving fears of supply disruptions from a major global crude-producing region.

Brent crude futures rose 56 cents, or 0.6 percent, to $91.05 a barrel by 0044 GMT, while U.S. West Texas Intermediate crude gained 83 cents, or 1 percent, to $86.59 a barrel.

In the previous session, Brent settled up 2.7 percent, after touching its highest level since August 25, while U.S. crude settled up 2.8 percent, marking its highest level since August 21.

U.S. President Donald Trump on Monday threatened further attacks on Iran following the first direct reciprocal strikes between the two countries on Sunday, a month after the initial incident, heightening tensions in a conflict that has recently evolved into an economic confrontation.

Tim Waterer, a market analyst at KCM, said, “These developments bring the possibility of an Iranian response back to the forefront. This, in turn, raises the likelihood of damage to energy infrastructure around the Gulf and adds a new layer of uncertainty to shipping movements through the Strait of Hormuz. These two risks are reflected in the firmer tone of crude prices.”

Shipping data from Kpler showed that the number of visible commercial vessels transiting the Strait of Hormuz at the start of the week fell to five per day.

Trump announced on Friday an agreement with Venezuela to control the country’s oil reserves, and later said it would help replenish the U.S. Strategic Petroleum Reserve, which is nearing its lowest level in 44 years.

Five sources familiar with the arrangements said that U.S. company Chevron, General Electric Vernova, India’s ONGC, Italy’s Eni, and Colombia’s Geo Park are moving to sign final agreements in Venezuela after months of negotiations regarding energy projects in the OPEC member state.

U.S. crude oil stocks in the Strategic Petroleum Reserve fell by about 3.1 million barrels last week to 286.6 million barrels.

Analysts surveyed by Reuters in August expect oil prices to remain above $80 a barrel in 2026 as shipping disruptions continue.