Oil climbs above $91 as US-Iran tensions revive supply fears

Global oil prices extended gains on Tuesday, with Brent crude rising above $91 a barrel, as renewed hostilities between the United States and Iran reignited concerns over disruptions to energy supplies from the Middle East.
According to agency reports,Brent crude futures rose 0.5 per cent to $91.05 a barrel, while US West Texas Intermediate (WTI) crude gained 1 per cent to $86.50. In the previous session, both benchmarks surged nearly 3 per cent, touching their highest levels in several weeks.
Market sentiment turned cautious after US President Donald Trump threatened further strikes on Iran following the latest exchange of attacks between the two countries. The escalation has revived fears over the security of oil infrastructure in the Gulf region and shipping through the Strait of Hormuz, a key route that carries around one-fifth of global oil supplies.Shipping data showed a sharp decline in vessel movement through the strait over the weekend, while efforts by mediators, including Qatar and Oman, to reopen the route have yet to make progress. Adding to concerns, the United Kingdom Maritime Trade Operations agency reported that a tanker was struck by projectiles while exiting the Strait of Hormuz, though no casualties were reported.
The rise in crude prices has also rattled financial markets. Rising energy costs and geopolitical uncertainty pushed global bond yields higher, with the US 10-year Treasury yield nearing a 20-month high and investors reassessing inflation risks and the possibility of further interest rate hikes.Analysts noted that the prolonged shipping disruptions and escalating tensions in the Middle East could keep oil prices elevated, with many expecting crude to remain above $80 a barrel through 2026.

(Business Correspondent)