Oil Rises on Lingering Supply Concerns

WTI crude oil futures jumped more than 3% to $96.4 per barrel on Tuesday, recovering from a 5.3% drop the day before, as Iran continued attacks on energy infrastructure across the Middle East and Israel reported killing senior Iranian officials. Operations at the Shah gas field in the UAE were suspended, and an Iraqi oil field was also struck by drones and missiles. Loadings from Fujairah were again halted, according to Inchcape Shipping Services, further straining global supply as the war enters its third week and the near-complete closure of the Strait of Hormuz starts affecting consumers, particularly in Asia. Oil has surged over 40% since the conflict began, though prices eased on Monday ahead of the first US emergency reserve release. President Trump said Washington is targeting Tehran’s ability to threaten shipping and urged other nations to help secure the Strait, while Treasury Secretary Scott Bessent confirmed the US is allowing Iranian crude to transit.

WTI crude futures rose above $98 per barrel on Tuesday, rebounding from the previous session’s losses as investors continued to assess the impact of the Middle East conflict on global supply. Iran has stepped up attacks on energy infrastructure in the region, while most countries have so far resisted US President Donald Trump’s call for support in safeguarding commercial activity in the Strait of Hormuz. On Monday, the US oil benchmark tumbled more than 5% after several tankers safely navigated Hormuz over the weekend, raising hopes the waterway could soon reopen. India is also negotiating six additional vessels as several countries pursue back-channel talks with Iran to ensure safe passage for their ships. The US is allowing Iran to continue shipping crude through Hormuz, while a direct communications channel between the US and Iran has also reportedly been activated.

Crude Oil WTI increased 4% to 97.241 USD/Bbl