Oil prices moved higher Tuesday as renewed geopolitical tensions in the Middle East raised concerns over crude supplies and tanker traffic. The gains accelerated after the close following the U.S. decision to revoke the general license that had temporarily allowed sales of Iranian crude oil.
Brent crude settled at $74.16 per barrel, up $2.17 (3.01%), while West Texas Intermediate (WTI) closed at $70.44 per barrel, up $1.89 (2.76%). Following the settlement, both benchmarks extended their gains by more than 1% after news that U.S. sanctions on Iranian oil exports had been reinstated.
Market sentiment was further supported after multiple vessels were reportedly attacked near the Strait of Hormuz, reviving concerns over shipping security through one of the world’s most important energy transit routes. The incidents highlighted the continued fragility of the temporary ceasefire between the United States and Iran and reinforced fears that any disruption to Gulf exports could quickly tighten global oil supplies.
Although diplomatic efforts between Washington and Tehran remain ongoing, officials warned that negotiations could stall if tensions continue to escalate. With approximately one-fifth of global oil and liquefied natural gas shipments typically transiting the Strait of Hormuz, traders remain highly sensitive to developments affecting regional stability.
The combination of renewed sanctions, heightened security risks, and uncertainty surrounding future negotiations helped return a geopolitical risk premium to crude markets after several weeks of declining prices.