Oil prices climbed about 2% on Tuesday, reaching five-week highs as escalating military tensions in the Middle East renewed concerns over global energy supplies and shipping security. Brent crude rose 2.0% to settle at $91.01 per barrel, while West Texas Intermediate (WTI) also gained 2.0% to finish at $84.91 per barrel.
Markets remained focused on the growing risk of supply disruptions after renewed military exchanges between the United States and Iran, coupled with threats against Saudi energy exports and commercial shipping. Concerns intensified as reports indicated some tankers altered their routes following security warnings in the Red Sea, reinforcing fears that both the Strait of Hormuz and Red Sea shipping corridors could face additional disruptions.
While Saudi export facilities continued operating, uncertainty surrounding regional shipping logistics supported a higher geopolitical risk premium in crude prices. Analysts noted that current market strength reflects concern over potential transportation bottlenecks rather than immediate production losses, as any prolonged disruption to key export routes could significantly tighten global oil supplies.
Investors also looked ahead to U.S. petroleum inventory data, with expectations for another modest draw in crude stockpiles. Continued inventory declines alongside heightened geopolitical risks have helped keep upward pressure on oil prices despite ongoing concerns about global economic growth and demand.