Oil prices moved higher Tuesday, building on the previous session’s sharp rally, as escalating tensions in the Middle East and fresh threats to shipping through the Strait of Hormuz deepened concerns about possible supply disruptions.
International benchmark Brent crude traded at $79.80 per barrel at 10.10 a.m. local time (0710 GMT), up 2.1% from the previous close of $78.15.
US benchmark West Texas Intermediate (WTI) increased 2.1% to $72.85 per barrel, compared with $71.33 in the previous session.
The latest gains came after Iran’s Islamic Revolutionary Guard Corps (IRGC) said the Strait of Hormuz had been closed to transit and warned that vessels attempting to cross could be attacked.
Brig. Gen. Ebrahim Jabbari, a senior adviser to the IRGC commander-in-chief, said in remarks aired on Iranian state television that Iran would not allow passage through the strategic waterway in response to US-Israeli attacks.
"The Strait of Hormuz has been closed. We will attack and set ablaze any ship attempting to cross," Jabbari said.
He also warned that oil pipelines could be targeted and said Iran would not allow "a single drop of oil" to leave the region.
Experts say a prolonged closure of the Strait of Hormuz remains unlikely, but warn that a sustained shutdown could send oil prices into triple digits.
Meanwhile, US Secretary of State Marco Rubio defended ongoing joint airstrikes by American and Israeli forces against Iran, claiming there was an "imminent threat" from Iran linked to its missile capabilities and alleged plans to target American bases and its allies in the region.
"There absolutely was an imminent threat," Rubio told reporters on Capitol Hill before briefing the Gang of Eight – the four congressional leaders and the heads of the House and Senate Intelligence Committees.
"We knew that if Iran was attacked, and we believed it would be attacked, that they would immediately come after us, and we were not going to sit there and absorb a blow before we responded," he said.
Rubio also said the US would take steps to help ease higher energy costs resulting from the recent rise in oil prices.
Analysts say oil prices are likely to remain highly sensitive to geopolitical developments, with volatility expected to persist as markets factor in emerging risks.
Israel and the US launched coordinated airstrikes on Iran on Feb. 28, escalating an already tense standoff even as diplomatic efforts were underway between Tehran and Washington. Brent crude oil traded around $73 per barrel at the close of trading on Feb. 27, just before the strikes.
By Handan Kazanci
Anadolu Agency
energy@aa.com.tr
