Crude Oil Hits 5-week High

Crude oil rose to around $88 a barrel on Tuesday, following a 2.8% gain on Monday, as renewed hostilities between the US and Iran heightened concerns over prolonged disruptions to energy shipments through the Strait of Hormuz. US forces struck an island in the strategic waterway, prompting Iran to retaliate with attacks on US-linked targets in the UAE and Jordan, marking the first direct exchange of fire in about a month. Two supertankers were reportedly hit by unidentified projectiles while transiting the chokepoint, highlighting the risks facing vessels in the region. Despite the escalating tensions, crude exports continue to move through Hormuz, with some tankers reportedly switching off their transponders. Producers including Saudi Arabia, the UAE, Kuwait and Iraq are still managing to ship barrels. However, the threat of further attacks remains a major concern, particularly after a tanker was reportedly struck by three unidentified projectiles near Oman while exiting the waterway.

Crude Oil increased to 87.73 USD/Bbl, the highest since July 2026. Over the past 4 weeks, Crude Oil WTI gained 9.07%, and in the last 12 months, it increased 33.6%.

Crude oil climbed toward $87 per barrel on Tuesday, extending gains from the previous session as renewed hostilities in the Middle East raised concerns about further disruptions to energy flows from the region. US forces targeted two Iranian rocket launchers on Larak Island, while Tehran responded with attacks on the UAE and Jordan, marking a resumption of hostilities between the US and Iran after roughly a month of relative calm. President Donald Trump also extended military threats to Kharg Island, Iran’s key oil export hub. Meanwhile, oil shipments continue to pass through the Strait of Hormuz, with major Gulf producers including the UAE, Saudi Arabia, Kuwait, and Iraq still exporting some volumes. However, a supertanker caught fire in the strait after hitting two naval mines, underscoring the persistent risks facing Hormuz shipping. Elsewhere, refinery strikes in Russia have further tightened global refining capacity, driving refined-product margins to fresh highs.