The upward movement in oil prices on Tuesday was mainly driven by concerns that ongoing tensions between the US, Israel, and Iran could lead to further supply disruptions and increased energy prices.
International benchmark Brent crude traded at $103.89 per barrel at 9.48 a.m. local time (0648 GMT), up 3.6% from the previous close of $100.21
US benchmark West Texas Intermediate (WTI) rose 3.2% to $96.91 per barrel, compared with $93.88 in the previous session.
Crude prices rebounded after falling by about 5% in the previous session, while reports of some vessels passing through the Strait of Hormuz limited further gains. However, restricted transit and the fact that the waterway remains largely closed indicate that supply-side risks persist.
Tensions between the US, Israel, and Iran entered their third week, with no signs of de-escalation. Iran warned it could target US-affiliated industries in the Middle East following last week's attacks on Kharg Island, a key export terminal.
US President Donald Trump over the weekend called on at least seven countries, including China, to help reopen trade through the Strait of Hormuz. However, some allies signaled they had no plans to deploy ships to the region, adding to ongoing uncertainty.
Developments in the Strait of Hormuz, which accounts for about 20% of global oil supply, continue to be closely monitored by markets. Some India- and Pakistan-flagged tankers were reported to have passed through the strait, which Iran effectively closed earlier this month.
Iran had previously stated it would allow vessels from certain countries to pass, while targeting ships linked to the US and its allies.
Efforts to reopen the strait and allow passage for certain tankers had pushed prices lower in the previous session. Despite these developments, ongoing conflict in the Middle East and concerns over prolonged supply disruptions continue to put upward pressure on oil prices.
Rising energy prices are also fueling inflation concerns, raising expectations that global central banks may maintain tighter monetary policies. Investors are closely watching this week's meetings of the US Federal Reserve, the European Central Bank, and the Bank of Japan.
By Humeyra Ayaz
Anadolu Agency
energy@aa.com.tr
