Washington, DC – Global oil prices rose sharply on Tuesday, driven by renewed concerns about potential disruptions to crude oil supplies from the Middle East. The price increase coincided with renewed fighting between the United States and Iran, as well as heightened security risks related to maritime traffic in the strategic Strait of Hormuz. Specifically, Brent crude, the international benchmark, rose 56 cents, or 0.6 percent, to $91.05 a barrel. Similarly, West Texas Intermediate (WTI) crude, the US benchmark, climbed 83 cents, or 1 percent, to $86.59 a barrel.
Consecutive gains reflect fears of a widening Gulf conflict
These new price gains are a continuation of the upward trend seen in the markets during the previous session. In that session, Brent crude jumped by 2.7 percent, while US crude rose by 2.8 percent. These concerns among investors were fueled by growing fears of an escalating military conflict and its direct impact on energy infrastructure. Furthermore, there were disruptions to oil tanker and cargo traffic in the Arabian Gulf region.
Maritime paralysis and a sharp decline in ship traffic through the strait
On the ground, data from the maritime security firm Kpler showed a record low in the number of visible cargo ships transiting the Strait of Hormuz, settling at just five vessels per day over the weekend. This partial paralysis comes as diplomatic mediation efforts led by Qatar and Oman have yet to yield any tangible progress. These efforts aim to reopen the strait and ensure safe navigation. This vital waterway is of paramount strategic importance to global energy markets, as it was a major artery through which, before the war, approximately one-fifth of the world’s oil supply passed.
An oil tanker was targeted with projectiles near the Omani coast.
In a serious development that exacerbates the risks to the maritime shipping sector, the United Kingdom Maritime Trade Operations (UKMTO) confirmed that an oil tanker was directly hit by three unidentified projectiles while sailing in waters outside the Strait of Hormuz. Despite the attack, reports indicate no injuries to crew members or environmental damage. Nevertheless, the incident heightens security concerns amid ongoing regional military tensions.
