Oil Climbs to One-Month High as U.S.-Iran Truce Collapse Fuels Supply Concerns

Crude oil rose more than 3% to nearly US$81 per barrel on Tuesday, reaching its highest level in almost a month as the collapse of the ceasefire between the United States and Iran renewed concerns over disruptions to global energy supplies.

The advance followed a 9.4% jump in the previous trading session after renewed attacks targeted commercial shipping in the Strait of Hormuz, one of the world’s most important routes for crude oil and liquefied natural gas exports.

The United Arab Emirates said two of its oil tankers were struck while transiting the waterway, highlighting the growing security risks facing vessels operating in the Gulf.

The latest escalation followed the United States’ decision to resume restrictions on Iranian oil exports, launch a new wave of military strikes against Iran and propose new charges for commercial vessels receiving protection from the U.S. Navy.

Supply concerns also intensified after Saudi Arabia intercepted missiles launched by Yemen’s Houthi movement, while Washington voiced support for tighter sanctions targeting Russian energy exports.

The renewed geopolitical tensions have heightened fears of prolonged disruptions to global oil supplies, prompting investors to reassess supply risks and increasing the geopolitical premium reflected in crude prices.

The Strait of Hormuz remains a critical corridor for global energy trade, with any disruption to shipping closely monitored by energy markets because of its potential impact on worldwide oil and LNG supplies.