Oil rose in price amid a new escalation in the Middle East

Oil prices rose by approximately 2% on Tuesday, as the resumption of hostilities between the United States and Iran in the Middle East renewed concerns about supply disruptions from the oil-producing region, UNN writes, citing Reuters.

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Brent crude oil futures rose by $1.65, or 1.82%, to $92.14 per barrel by 12:01 GMT (15:01 Kyiv time), while U.S. West Texas Intermediate crude rose by $2.16, or 2.52%, to $87.92.

At this level, oil contracts recouped most of the losses incurred last week amid the renewed escalation of the conflict in the Middle East.

On Monday, U.S. President Donald Trump threatened further strikes on Iran after the first exchange of direct attacks between the countries since late July, raising tensions in a conflict that recently developed into an economic confrontation.

"The exchange of 'tit-for-tat' missile strikes between the U.S. and Iran confirms the view of those who believe that even if this is not an 'eternal war,' this conflict will continue and continue," said PVM analyst John Evans.

Iranian President Masoud Pezeshkian said on Tuesday that his country would immediately reciprocate if the United States returned to its commitments under a temporary peace agreement signed in June.

The efforts of mediators, including Qatar and Oman, to reach an agreement on reopening the Strait of Hormuz, through which about one-fifth of the world's oil and LNG supplies were transported before the war began in late February, have so far proved unsuccessful.

"The renewed military action between the U.S. and Iran has raised concerns about prolonged disruptions to energy flows through the Strait of Hormuz," said Saxo Bank analyst Ole Hansen, adding that the absence of further buying suggests that the market is betting that supplies will not be disrupted more than they already have been.

Two supertankers carrying Saudi oil were struck by unidentified projectiles within several minutes of each other on Monday while transiting the Strait of Hormuz.

The number of visible commercial vessels passing through the Strait of Hormuz on Monday was approximately five per day, according to Kpler data. None of the five vessels was a crude oil tanker.

"The hopes that emerged last week for the future resumption of shipping through the Strait of Hormuz have suffered a serious blow. The question is also whether, if the escalation resumes, the unofficial movement of vessels through the strait can continue unhindered," Commerzbank analysts wrote.

Analysts surveyed by Reuters in August expected oil prices to remain above $80 per barrel in 2026, as shipping disruptions continued.

Oil prices rose by more than 2% after U.S. and Iranian strikes31.08.26, 17:01 • 3640 views