Oil prices rose on Tuesday as renewed Iranian attacks on energy infrastructure in the Middle East reignited supply concerns and underscored the risk of prolonged disruptions from the ongoing conflict. Brent crude settled at $103.42 per barrel, up $3.21, or 3.2%, while U.S. West Texas Intermediate (WTI) crude settled at $96.21, up $2.71, or 2.9%.
The gains followed fresh strikes on the United Arab Emirates, where attacks on the key export hub at Fujairah forced at least partial shutdowns of oil loading operations. Located just outside the Strait of Hormuz, Fujairah is a critical outlet for crude flows, and disruptions there have added to concerns over tightening global supply.
The Strait of Hormuz remains only partially operational, with limited tanker traffic resuming but ongoing security risks continuing to restrict flows. Analysts warn that even isolated attacks on shipping or infrastructure could quickly escalate supply disruptions.
Production impacts are becoming more pronounced, with reports indicating the UAE has cut output by more than half due to logistical constraints tied to the strait’s closure.
Despite some vessels moving through the region, markets continue to price in significant risk. Middle East crude benchmarks have surged to record premiums, reflecting limited availability of physical barrels.
Meanwhile, efforts to stabilize markets remain uncertain. The International Energy Agency (IEA) signaled that additional releases from strategic reserves are possible beyond the previously announced 400 million barrel draw, though analysts caution that such measures may only provide temporary relief if disruptions persist.
Overall, traders expect volatility to remain elevated, with prices likely to stay supported as long as risks to infrastructure and shipping in the region continue.