Oil climbs to one-month high amid US-Iran tensions

Oil prices climbed around 2 per cent on Tuesday, reaching their highest level in a month, after renewed military escalation between the United States and Iran in the Strait of Hormuz raised fresh concerns over global energy supplies.According to agency reports,Brent crude futures rose $1.68, or 2 per cent, to $84.98 a barrel by 0051 GMT, while US West Texas Intermediate (WTI) crude gained $1.65, or 2.1 per cent, to $79.79 a barrel.The rally followed a sharp surge in the previous session, when Brent crude jumped 9.6 per cent, marking its biggest single-day gain since May 2020.

Oil prices hit a one-month high on Tuesday, after the US president Donald Trump announced the return of Iran's naval blockade.

Brent traded near $85 a barrel following its biggest daily jump since May 2020.

— Iran International English (@IranIntl_En) July 14, 2026

The latest rise comes as tensions between Washington and Tehran intensified despite the two countries signing a memorandum of understanding on June 17 aimed at ending hostilities.The United Arab Emirates said two of its oil tankers were struck by Iranian cruise missiles while sailing through the southern shipping lane of the Strait of Hormuz in Omani territorial waters on Monday. The attack killed one Indian crew member and left eight others injured, according to the UAE Ministry of Defence.
Meanwhile, US President Donald Trump announced that Washington had reinstated its naval blockade of Iranian shipping. He also said the United States should be compensated for safeguarding maritime trade routes used by countries operating in the Strait of Hormuz.Market participants said the renewed confrontation has significantly increased concerns over crude supply disruptions from one of the world's most important oil transit routes."The latest escalation, including the US reinstatement of the blockade and Iranian responses, has clearly injected fresh risk into the market," Tim Waterer, Chief Market Analyst at KCM Trade, said."While a full closure hasn't occurred, the competing objectives of both sides have made the supply picture highly uncertain," he added.
Military action also continued overnight. The US Central Command said it launched a third consecutive night of strikes against Iran, while Iran's semi-official YJC news agency reported multiple explosions in the southern port city of Bandar Abbas and on Kish Island early Tuesday.Adding to regional tensions, Yemen's Houthi movement launched missiles towards Saudi Arabia after accusing the kingdom of carrying out airstrikes on an airport under Houthi control.Analysts expressed concern that any expansion of the conflict could further disrupt oil exports from the region."If the Houthis extend their attacks to Saudi's crude products in the Red Sea, it could put further uncertainties on crude flows from the region," Simon Wong, portfolio manager at Gabelli Funds, said in a note.
Investors are also awaiting fresh US inventory data for clues on demand. A preliminary Reuters poll indicated that US crude oil stockpiles likely declined last week, while gasoline and distillate inventories were expected to have increased.

(Business Correspondent)