Oil prices rose nearly 5% on Tuesday as expectations of tougher US sanctions targeting Russia added to mounting concerns over global crude supplies already strained by escalating tensions around the Strait of Hormuz.
International benchmark Brent crude traded at $87.32 per barrel at 12.02 p.m. local time (0902 GMT), up 4.8% from the previous close of $83.30.
US benchmark West Texas Intermediate (WTI) traded at $81.11 per barrel, up 3.8% from $78.14 in the previous session.
The rally was driven by expectations that Washington could tighten sanctions on Russia, potentially disrupting global crude supplies.
According to Axios, Republican and Democratic senators are once again coalescing around a bipartisan sanctions bill targeting Russia after reaching common ground with the Trump administration.
The legislation, first introduced by Republican Sen. Lindsey Graham and Democratic Sen. Richard Blumenthal, had been put on hold after US President Donald Trump asked Republican lawmakers to delay action to give his administration more time to increase pressure on Russian President Vladimir Putin.
In a joint statement on July 10, Graham, Blumenthal, Sen. Jeanne Shaheen and Sen. Roger Wicker said they had agreed with the Trump administration to move forward with a revised version of the bill.
While the original proposal envisioned tariffs of up to 500% on imports from countries, including China, that continue purchasing Russian oil and natural gas, the revised legislation narrows the scope of those measures.
The prospect of new US sanctions targeting major buyers of Russian crude strengthened expectations of tighter global supplies, providing further support for oil prices.
Additional support came from renewed geopolitical tensions in the Gulf, where military escalation has heightened concerns over the security of oil shipments through the Strait of Hormuz, a key artery for global energy trade.
Trump said Monday that US forces were degrading Iran's military capabilities related to the Strait of Hormuz and reinstating a naval blockade targeting the country, while maintaining that a diplomatic agreement with Tehran remained possible despite the escalating conflict.
His remarks came as the US carried out a third consecutive night of military strikes against Iran. The White House said the operations were intended to reduce Tehran's ability to threaten commercial shipping and regional security in the Strait of Hormuz.
Iranian Foreign Minister Abbas Araghchi said Monday that Tehran would remain the "guardian" of the Strait of Hormuz after Trump threatened to impose fees on vessels using the strategic waterway.
Meanwhile, four people were injured after projectiles fired by US forces struck the southwestern Iranian city of Omidiyeh early Tuesday, according to a senior provincial official.
Valiollah Hayati, deputy governor of Iran's Khuzestan province, said parts of Omidiyeh came under attack at around 2.10 a.m. local time (2240 GMT Monday), according to the state-run IRNA news agency.
"According to initial reports and assessments, four people have been injured in this attack," Hayati said.
Earlier, the US Central Command (CENTCOM) said it had completed its latest round of strikes late Monday, targeting military facilities along Iran's southern coast in an effort "to further degrade Iran's ability to attack commercial shipping."
Regional tensions widened after Jordan and Bahrain said they had intercepted Iranian missiles and other aerial threats following Tehran's attacks targeting US military facilities.
Jordan's Armed Forces said they intercepted and shot down four missiles that entered the kingdom's airspace from Iran early Tuesday, according to the Jordan News Agency (Petra).
Iran's Islamic Revolutionary Guard Corps (IRGC) later said it had targeted a US air base in Jordan with ballistic missiles.
"This base was used to attack us, and the American criminals were held accountable for their actions," it said.
Separately, Bahrain's Defense Force said its air defense systems intercepted and destroyed a number of what it described as "treacherous Iranian aerial attacks" early Tuesday.
The military did not immediately provide details on the number or type of aerial threats intercepted, or whether the attacks caused casualties or damage.
By Handan Kazanci
Anadolu Agency
energy@aa.com.tr
