Oil prices rose to four-week highs on Tuesday, July 14, with Brent at USD84.80 and WTI at USD79.84 by 3:30 a.m. GMT, or 8:30 a.m. Pakistan time.
Brent crude futures gained USD1.50, or 1.8%, while US West Texas Intermediate rose USD1.70, or 2.2%, according to the Reuters market data.
Brent had surged 9.6% to settle at USD83.30 on Monday, its largest one-day percentage increase since May 2020. WTI settled 9.4% higher at USD78.14.
The rally followed a third consecutive night of United States strikes against Iran. President Donald Trump also restored a blockade on Iranian shipping and proposed charging 20% of cargo value for passage through the Strait of Hormuz.
Two United Arab Emirates tankers were struck by Iranian missiles in Omani territorial waters on Monday, according to the UAE authorities. One Indian crew member died, and eight others suffered injuries.
Read: Dollar Rises as Brent Jumps 4.1% on US-Iran Strikes
Ship-tracking data showed confirmed traffic through the strait fell by more than half over the weekend. Only 19 vessels completed the passage, according to data provider Kpler.
KCM Trade chief market analyst Tim Waterer said the renewed blockade and Iran’s response had added fresh supply risk. However, he noted that the strait had not faced a complete closure.
Phillip Nova analyst Priyanka Sachdeva said traders would focus on physical crude movements. She said a prolonged reduction in tanker traffic could push prices higher, while continued shipments could reduce part of the geopolitical premium.
A preliminary Reuters survey also indicated that US crude inventories likely declined during the previous week, while gasoline and distillate stocks probably increased.
