Oil prices climbed nearly 2% Tuesday, with both Brent and WTI reaching one-month highs as renewed tensions between the United States and Iran heightened concerns over crude exports from the Middle East and shipping through the Strait of Hormuz.
Brent crude settled at $84.73 per barrel, up $1.43 (1.7%), while West Texas Intermediate (WTI) closed at $79.34 per barrel, up $1.20 (1.5%). Both benchmarks posted their highest settlements since mid-June as geopolitical risks remained the dominant driver of the market.
Market sentiment remained focused on the Strait of Hormuz following renewed maritime restrictions and military activity in the region. Prior to the conflict, approximately one-fifth of global oil and liquefied natural gas shipments passed through the strategic waterway, making any disruption a significant concern for global energy supplies.
Although some shipping restrictions were eased during the session, additional attacks on commercial vessels reinforced concerns that the current ceasefire remains fragile and that shipping disruptions could persist. The continued uncertainty has maintained a geopolitical risk premium in crude prices despite broader concerns over global demand.
Limiting further gains were expectations that higher energy prices could contribute to inflation, slowing economic growth and reducing future oil consumption. Meanwhile, continued disruptions to Russian refining and diesel exports have tightened global fuel markets, supporting refining margins and adding to overall energy market volatility.
Traders also turned their attention to upcoming U.S. petroleum inventory data, with expectations for another weekly decline in crude stockpiles that could provide additional support for prices if confirmed.