Oil prices jumped more than $4 a barrel on Tuesday, with Brent settling at $94.65 and US West Texas Intermediate at $90.22 as renewed US-Iran fighting raised fears of further supply disruptions.
Brent futures gained $4.16, or 4.6%, while WTI climbed $4.46, or 5.2%, according to the supplied market report. The settlements marked Brent’s highest close since July 24 and WTI’s highest since July 23.
The rally accelerated after the United States launched fresh air strikes against Iranian targets, reducing hopes that last weekend’s exchange of attacks would remain contained.
US Central Command said on X that American forces began striking Islamic Revolutionary Guard Corps targets in Iran at 1600 GMT. It linked the operation to attempted attacks on commercial shipping in the Strait of Hormuz and US military personnel in the region.
Read: Oil Prices Jump Above $90 as US-Iran Fighting Flares
Oil markets were already reacting to reports that two tankers had been hit while leaving the Strait of Hormuz, a key global energy route that the source said Iran had effectively closed to shipping.
Iran also warned that it would prevent oil exports from the Gulf. US President Donald Trump threatened a stronger response to renewed Iranian attacks, while Treasury Secretary Scott Bessent signalled additional US sanctions.
Saxo Bank analyst Ole Hansen said the latest escalation increased concerns about prolonged disruption to energy flows through the Strait of Hormuz.
Diesel markets also tightened. US diesel futures rose to a 52-month high after gaining 51% over 10 weeks, while the diesel refining margin reached a record of about $107 a barrel, according to LSEG data.
Traders were also awaiting US inventory figures. Analysts estimated crude stocks fell by 800,000 barrels in the week ended August 28, which would mark the first weekly decline in five weeks.
