Oil up around 2% as renewed US-Iran strikes stoke supply fears

The Express Tribune reported that oil prices climbed about 2% on Tuesday as renewed direct fighting between the US and Iran revived worries about supplies from the Middle East. Brent crude futures traded at $92.21 per barrel, a gain of $1.72 or 1.9%, while West Texas Intermediate advanced to $87.88, up $2.12 or 2.47%. Monday's exchange of direct attacks was the first since late July, after which US President Donald Trump threatened further strikes.

Iranian President Masoud Pezeshkian said Iran would respond at once if Washington reverted to its obligations under the June interim accord. Mediators Qatar and Oman have sought a settlement that would reopen the Strait of Hormuz, a waterway that handled roughly a fifth of global crude before fighting began in late February. Those efforts have been inconclusive to date.

Monday saw two supertankers loaded with Saudi crude hit by unidentified projectiles, minutes apart, as they crossed the strait. Kpler shipping data showed commodity vessel transits in Hormuz at about five on Monday, against a 10-day average near 14. Commerzbank analysts said the recent hopes for a reopening of the strait had been dealt a severe blow, and questioned whether unofficial vessel traffic could keep moving if escalation continued.