Oil prices increased over 1% on Tuesday amid escalating Iranian attacks on the United Arab Emirates, raising concerns about global supply disruptions due to the ongoing U.S.-Israeli conflict with Iran. Brent crude futures rose by $1.33 to $101.53 a barrel, while U.S. West Texas Intermediate (WTI) climbed $1.21 to $94.71.
The conflict shows no signs of resolution, with Iran’s continued assaults on oil installations and disruptions in shipping through the Strait of Hormuz, a crucial route for 20% of the world’s oil trade. Analysts warn that a single incident, such as a missile strike on a tanker, could exacerbate the situation. Recent attacks have already affected operations at Fujairah port, halting oil loading and forcing the UAE to cut production significantly.
Middle Eastern crude benchmarks have surged to record highs, reflecting the limited supply available for delivery. U.S. allies have largely rejected calls to deploy warships in the region, with leaders emphasizing that they are not involved in the conflict. Meanwhile, oil tankers are slowly beginning to navigate the Strait of Hormuz, although the overall disruption remains severe, with potential for further price increases in the coming weeks.
