Oil prices rise as latest fighting revives Mideast supply disruption risks

Oil prices climbed on Tuesday after renewed fighting between the United States and Iran raised concerns about supply disruption from the Middle East. By 0455 GMT, Brent crude futures had risen $1.05 to $91.54 a barrel, a gain of 1.2%, while US benchmark WTI added $1.27 to $87.03, or 1.5%. Business Recorder reported that both benchmarks had already closed higher in the previous session, with Brent up 2.7%.

President Donald Trump warned of more strikes on Iran after direct attacks between the two nations on Sunday marked their first such exchange in a month, deepening a conflict that had recently become an economic standoff. KCM chief market analyst Tim Waterer said both the prospect of Iranian retaliation and the uncertainty for shipping were being priced into crude.

Kpler shipping data showed five visible commodity vessels transited the Strait of Hormuz on Monday, compared with a 10-day average near 14, and none of them were liquid tankers. Separately, UKMTO said a tanker was hit by three projectiles while leaving the strait, with no casualties or environmental damage mentioned. Mediation led by Qatar and Oman has so far not succeeded in reopening the waterway, which Iran closed after US and Israeli attacks on February 28.