Oil prices climbed more than 2 percent on Tuesday amid renewed concerns over supply disruptions linked to escalating tensions between the United States and Iran in the Middle East. By 1302 GMT, Brent crude futures increased by $2.17, or 2.4 percent, to $92.66 per barrel, while US West Texas Intermediate crude rose $2.48, or 2.89 percent, to $88.24 per barrel. These gains largely offset the losses experienced over the previous week following a resurgence of conflict in the region.

The renewed hostilities mark the first direct exchange of attacks between the United States and Iran since late July. On Monday, US President Donald Trump warned of additional strikes against Iran, signaling a sharp uptick in tensions. The conflict, which had recently shifted focus toward economic measures, now appears to be returning to a pattern of military confrontation.

John Evans, an analyst at PVM, noted that the ongoing missile exchanges between the two countries suggest the conflict is likely to continue for an extended period, despite hopes it might be short-lived.

In response, Iranian President Masoud Pezeshkan stated on Tuesday that Iran would immediately reciprocate should the United States return to its commitments under the interim peace agreement reached in June.

Shipping activity near the Strait of Hormuz, a critical chokepoint for global oil shipments, remained subdued. According to Kepler data, only about five visible commodity vessels transited the strait on Monday—well below the 10-day average of approximately 14. Notably, none of these vessels were liquid tankers, indicating ongoing caution within the oil transportation sector amid heightened regional instability.

The developments underscore continuing uncertainties in global energy markets stemming from geopolitical instability in one of the world’s most important oil-producing regions.