Oil prices climbed for a second straight session as renewed U.S.-Iran strikes revived fears of supply disruptions through the Strait of Hormuz. Brent and WTI both jumped, WTI is testing a one-month high, and two tankers were struck near the strait even as OPEC+ output rises and a new Venezuela supply deal offers no quick relief.
Oil prices climbed by around 2% on Tuesday, extending a rally as renewed fighting between the United States and Iran revived fears of supply disruptions from the Middle East. Brent crude rose $1.72, or 1.9%, to $92.21 a barrel at 1046 GMT, while U.S. West Texas Intermediate crude gained $2.12, or 2.47%, to $87.88.
Both contracts had already settled nearly 3% higher in the previous session, extending a sharp rebound after renewed hostilities put security of the Strait of Hormuz back at the center of the oil market. The latest escalation began when U.S. forces struck Iranian military targets on Larak Island, ending a weeks-long lull in direct attacks. Iran subsequently launched missiles at U.S. military facilities in Jordan. On Monday, President Trump threatened further strikes against Iran following the first exchange of direct attacks between the countries since late July.
Tankers hit as Hormuz traffic thins
On Monday, two supertankers carrying Saudi oil were struck by unknown projectiles within minutes of each other while transiting the Strait of Hormuz. Visible commodity vessel traffic through the strait held at about five ships per day, well below the 10-day average of around 14, shipping data from Kpler showed.
Efforts by mediators including Qatar and Oman to reopen the strait, which carried about a fifth of global oil supplies before the war erupted in late February, have so far proven inconclusive. Iran's President Masoud Pezeshkian said Tuesday his country would immediately reciprocate if the U.S. returned to its commitments under the interim peace deal signed in June.
Venezuela supply deal offers no quick relief
President Trump said oil secured under a new deal with Venezuela will be used to replenish the U.S. Strategic Petroleum Reserve, which has fallen to near its lowest level in 44 years. The reserve stood at about 290 million barrels as of Aug. 21. The added supply would still take years to reach the market, since Venezuela's heavier, sour crude needs fresh infrastructure investment before output can rise meaningfully.
Meanwhile, OPEC+ approved an additional production increase of about 188,000 barrels per day from September, completing the planned rollback of earlier voluntary cuts. Russia extended its diesel export ban until Sept. 30, adding to concerns over refined-fuel supplies. Analysts polled by Reuters in August expect oil prices to remain above $80 a barrel in 2026 as shipping disruptions continue.
WTI probes a one-month high
WTI futures reached one-month highs, testing the $86-$88.65 resistance level that has capped prices since a long-term bearish trend line took hold. A sustained break above that band would open the way to $90, then the July high of $93.50, and potentially $100. On the downside, support sits near $85.00, then $83.80, where the 21-day exponential average comes into focus.
The rally also hit other risk assets: bond yields rose further and gold, silver and Bitcoin all traded lower as U.S. index futures fell alongside European markets.
Sources: Commodities & Futures News, Commodities & Futures News, Commodities Analysis & Opinion
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