By COMFORT OGBONNA
Oil prices climbed by about $1 a barrel on Tuesday as renewed fighting between the United States and Iran intensified concerns that the conflict could further disrupt crude supplies from the Middle East.
Brent crude futures rose $1.05, or 1.2%, to $91.54 a barrel by 4:55 a.m. GMT. U.S. West Texas Intermediate crude gained $1.27, or 1.5%, to $87.03 a barrel.
The gains followed a stronger session on Monday, when Brent finished 2.7% higher after briefly reaching its highest level since Aug. 25. West Texas Intermediate settled 2.8% higher and also touched its strongest price since Aug. 21.
The latest increase reflects renewed concerns over the security of oil shipments through the Strait of Hormuz, one of the world’s most important energy corridors.
Shipping activity through the waterway remains sharply below normal levels. Data showed that only five visible commodity vessels were recorded transiting the Strait of Hormuz on Monday, compared with a 10-day average of about 14 vessels per day. None of the five vessels was a liquid tanker.
The limited shipping activity has increased uncertainty over how much crude and other energy products can move through the waterway while the conflict continues.
The Strait of Hormuz is particularly important to global energy markets because it carried roughly one-fifth of the world’s oil supplies before the conflict began. Any prolonged disruption to traffic through the waterway could put additional pressure on global crude inventories and push prices higher.
Diplomatic efforts involving Qatar and Oman to negotiate an agreement that would allow shipping through the strait to resume have so far failed to produce a breakthrough.
Iran closed the waterway after the United States and Israel launched attacks against the country on Feb. 28, disrupting a major route used by oil tankers and other commercial vessels.
The risks to shipping remained evident Tuesday after the United Kingdom Maritime Trade Operations agency said a tanker reported being struck by three projectiles while sailing out of the Strait of Hormuz.
No casualties or environmental damage were reported in connection with the incident, but the report underscored the continuing risks facing commercial vessels operating in and around the strategic waterway.
Although satellite-tracking companies estimate that around 6 million barrels of oil a day are still moving through the strait, that volume remains significantly below levels seen before the conflict.
Analysts said the decline in shipments is becoming increasingly important for the global oil market because the supply buffers that have helped cushion the disruption are beginning to shrink.
U.S. oil inventories are approaching lower levels, while China’s ability to maintain reduced crude imports could come under pressure as seasonal demand increases.
The United States is also drawing down its emergency oil reserves. Inventories in the Strategic Petroleum Reserve fell by about 3.1 million barrels during the latest week, leaving the reserve with approximately 286.6 million barrels.
The decline adds another layer of uncertainty to the global oil market because emergency stockpiles are an important source of additional supply during major disruptions.
Market participants are closely watching both military developments and diplomatic efforts in the region as they assess the potential duration and severity of the supply disruption.
The longer the Strait of Hormuz remains constrained, the greater the possibility that refiners and traders will have to compete for a smaller supply of crude available to international markets.
Higher oil prices could also increase pressure on consumers and businesses if elevated crude costs eventually feed into gasoline, diesel, transportation and other energy-related expenses.
Analysts surveyed in August expected oil prices to remain above $80 a barrel through 2026 as shipping disruptions continue. The latest escalation in the Middle East has increased the possibility that prices could remain elevated for longer if the flow of crude through the Strait of Hormuz does not return to normal.
For now, traders are focused on whether fighting will intensify, whether diplomatic efforts can restore safe passage through the waterway and how quickly global inventories can absorb further supply disruptions.
With Brent crude already above $90 a barrel and shipping activity through the Strait of Hormuz still severely restricted, the oil market remains highly sensitive to developments in the conflict.
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