Oil prices rise as latest fighting resurrects Middle East supply disruption risks

Oil prices rose on Tuesday after a fresh round of fighting between the United States and Iran revived worries about crude supplies from the Middle East, Business Recorder reported. Brent crude was 56 cents, or 0.6 per cent, higher at $91.05 a barrel by 0044 GMT, while US West Texas Intermediate gained 83 cents, or 1 per cent, to $86.59.

Both benchmarks had closed higher in the previous session, with Brent up 2.7 per cent and touching its loftiest level since August 25, while WTI rose 2.8 per cent. President Donald Trump threatened more strikes on Iran on Monday, a day after the two countries exchanged direct attacks for the first time in a month. Tim Waterer of KCM said the renewed clashes revived the risk of Iranian retaliation, which could damage Gulf energy infrastructure and add uncertainty for shipping through Hormuz.

Kpler shipping data showed the number of visible commodity vessels passing through the Strait of Hormuz fell to five per day over the weekend. The UK Maritime Trade Operations agency, known as UKMTO, said a tanker was hit by three projectiles while leaving the strait on Tuesday, with no casualties reported. Mediation by Qatar and Oman aimed at a deal to reopen the Strait of Hormuz, which handled roughly one-fifth of global oil supplies before the conflict began in late February, has yet to make headway.