Oil prices extended their advance on Tuesday, with Brent crude approaching $100 a barrel as markets assessed the risk of further disruption to Middle East energy supplies following Iranian warnings about potential retaliation against oil and gas infrastructure in the Gulf.
November Brent Oil Futures rose 1.6% to $98.73 a barrel by 02:59 ET (06:59 GMT), while U.S. West Texas Intermediate (WTI) crude futures gained 2.9% to $94.14 a barrel.
Brent settled nearly 1% higher on Monday after briefly reaching $98 a barrel during the previous session.
Iran Warns of Retaliation Against Energy Assets
The latest increase in oil prices followed Iran’s threat to respond to what it described as U.S. “economic warfare” by establishing a maritime exclusion zone across the Persian Gulf.
The warning followed a series of strikes between the United States and Iran over the weekend, including attacks involving shipping.
Iranian officials subsequently warned that U.S. oil and gas interests and other energy infrastructure in the Gulf could be targeted in retaliation for attacks on Iranian assets.
“The oil and gas production chain here is sprawling, accessible, and exposed. American oil and gas companies across these waters and facilities share that exposure,” Iranian Parliament Speaker Mohammad Baqer Qalibaf said.
“Strike our assets, and you get struck. We’ve already proven it,” he added.
The statements represent Iranian warnings about potential retaliation rather than confirmation that such attacks will occur.
Strait of Hormuz Remains in Focus
The Strait of Hormuz remains a central consideration for oil markets because of its role in regional energy shipments.
Iran has said it plans to establish a new restricted zone in the Gulf and an alternative shipping corridor. Markets are assessing whether any changes to maritime controls could affect tanker traffic through the waterway.
Mohsen Rezaei, secretary of Iran’s Supreme National Security Council, said on X that Washington had received a “clear warning” from Iran’s new missiles and that further economic pressure would be met with a maritime exclusion zone extending across the Gulf to the perimeter of the U.S. blockade.
Iran also said an agreement with Oman over arrangements for the Strait of Hormuz was close. Such an agreement could provide a mechanism for addressing shipping disruptions, although the supplied information does not indicate that a final deal has been reached.
Brent Extends Recent Advance
Oil prices have risen during the U.S.-Iran confrontation, with Brent gaining 8% last week and WTI advancing nearly 10%.
The latest move has taken November Brent futures to $98.73 a barrel, leaving the benchmark close to the $100 level.
Further movements in crude prices will depend on developments affecting regional energy production and shipping, alongside the outcome of diplomatic discussions concerning the Strait of Hormuz.