Oil prices climbed strongly in Asian trading on Tuesday, with Brent crude holding above the $100-per-barrel level as markets continued to assess potential supply disruptions linked to the ongoing U.S.-Israel conflict with Iran.
Crude benchmarks rebounded after falling about 5% in the previous session, following reports that some vessels had managed to navigate the Strait of Hormuz. However, traffic through the strategic waterway remains heavily restricted, and U.S. appeals for international support to secure the route have largely been rejected.
By 00:58 ET (04:58 GMT), Brent crude futures were up 2.8% at $103.01 per barrel, while U.S. West Texas Intermediate futures rose 2.6% to $95.54 per barrel.
Iran conflict continues as Hormuz traffic remains limited
Tensions between the United States, Israel and Iran showed little sign of easing on Tuesday as the conflict entered its third week.
Iran warned it could target U.S.-linked industries across the Middle East after the United States and Israel launched strikes last week on Kharg Island, a crucial export hub for Iranian oil.
Overnight, Iran and Israel exchanged additional air strikes, while drones and rockets were also launched toward the U.S. embassy in Baghdad.
U.S. President Donald Trump called over the weekend on several countries—including China—to assist in restoring shipping through the Strait of Hormuz. However, the appeal received limited support, with a number of U.S. allies saying they had no immediate plans to deploy naval assets to the region.
Control of the strait has become a central issue in the conflict, as roughly one-fifth of the world’s oil supply moves through the narrow passage. Iran had effectively blocked the route earlier this month.
Nevertheless, reports on Monday indicated that several gas tankers flying Indian and Pakistani flags had managed to pass through the waterway. Iran had previously suggested it would allow ships from certain countries to transit the strait while targeting vessels linked to the United States and its allies.
Oil prices have surged since the conflict began, driven by fears that supply disruptions could persist. Many major Asian economies rely heavily on crude shipments that pass through the Strait of Hormuz.
The inflationary impact of the conflict has also become a major concern for financial markets, as higher energy prices could push global central banks toward more hawkish monetary policy.
Several major central banks—including the Federal Reserve, the European Central Bank and the Bank of Japan—are scheduled to hold policy meetings later this week.