Gulf oil prices climbed sharply on Tuesday, rising more than 2% in early trading. Investors reacted to ongoing supply concerns and escalating tensions in the Middle East. The Strait of Hormuz, a critical chokepoint for global oil, remains mostly closed due to the U.S.–Israeli conflict with Iran.
Brent crude futures jumped $2.74, or 2.7%, to $102.95 per barrel. U.S. West Texas Intermediate (WTI) crude gained $2.45, or 2.6%, trading at $95.95. These increases reversed part of the previous session’s losses, signaling renewed market anxiety.
On the previous day, Brent futures had fallen 2.8%, while WTI crude lost 5.3%. Some tankers managed to pass through the Strait of Hormuz, yet concerns about disruptions persisted. Analysts say Gulf oil prices respond quickly to even minor supply interruptions.
The Strait handles roughly 20% of the world’s oil and liquefied natural gas. Market participants fear that missile attacks or mines planted by Iranian militias could further disrupt shipments. IG market analyst Tony Sycamore warned that even a single strike could ignite major market chaos.
Several U.S. allies refused President Donald Trump’s request to send warships to escort tankers. This decision increased uncertainty and supported the surge in Gulf oil prices. Analysts say the lack of intervention heightened investor caution.
Traders also reacted to a drone attack in Fujairah’s Oil Industry Zone. A fire broke out during morning trading, though no casualties occurred. This event, combined with Middle East tensions, pushed regional oil prices upward.
Meanwhile, the UAE reduced production by over half due to the effective closure of the strait. Iran requested that India release three seized tankers to secure safe passage. The International Energy Agency encouraged member nations to release more oil from strategic reserves to ease rising costs.
In conclusion, Gulf oil prices surged past $102 amid ongoing disruptions. Traders, exporters, and investors closely monitor the Strait of Hormuz and regional developments. The market remains volatile, requiring careful planning and timely decisions.
