Oil prices surged more than 2 percent on Tuesday amid renewed hostilities between the United States and Iran, raising concerns over potential disruptions to supply from the crucial Middle East oil-producing region.

By 1302 GMT, Brent crude futures had climbed $2.17, or 2.4 percent, reaching $92.66 per barrel. Meanwhile, U.S. West Texas Intermediate crude rose $2.48, or 2.89 percent, to $88.24 per barrel. These gains effectively reversed much of the losses incurred over the previous week, which had been triggered by the escalation in conflict.

The increase in prices followed a fresh exchange of missile attacks between the two nations, the first since late July. On Monday, U.S. President Donald Trump warned of further strikes against Iran, intensifying tensions that had recently shifted from direct conflict to an economic standoff.

Analysts noted the ongoing risk posed by the tit-for-tat military actions. John Evans, an analyst at PVM, remarked that the missile exchanges underscore the likelihood that this conflict, while not necessarily permanent, will persist for an extended period.

On a diplomatic front, Iranian President Masoud Pezeshkian stated on Tuesday that Iran would reciprocate immediately if the United States returned to its obligations under the interim peace agreement signed in June. This statement reflects the fragile status of negotiations amid heightened military activity.

Maritime traffic through the Strait of Hormuz, a vital corridor for global oil shipments, remained subdued. Data showed approximately five visible commodity vessels transiting the strait on Monday, significantly below the 10-day average of about 14 vessels per day. Notably, none of the five vessels were liquid tankers, indicating a cautious shipping environment amid the instability.

The combination of resumed military confrontation, geopolitical uncertainty, and reduced shipping activity in the region contributed to the upward pressure on oil prices, underscoring the ongoing risks faced by global energy markets tied to Middle Eastern developments.