Oil prices climb on renewed US-Iran fighting

Oil prices rose on Tuesday as the resumption of fighting between the United States and Iran in the Middle East renewed fears of supply disruptions from the world's key crude-producing region.

Brent crude futures were up 56 cents, or 0.6 per cent, to $91.05 a barrel at 0044 GMT, according to The Economic Times and The Straits Times, while US West Texas Intermediate crude was up 83 cents, or 1 per cent, to $86.59, as reported by The Irish Times. In the previous session, Brent closed up 2.7 per cent, at one point reaching its highest since August 25, and WTI settled up 2.8 per cent, touching its highest since August 21, according to all three outlets.

The price gains came after President Donald Trump threatened further strikes against Iran on Monday, following the first exchange of direct attacks between the countries in a month on Sunday, raising tensions in a conflict that had recently shifted into an economic standoff, as reported by The Irish Times and The Straits Times.

Analysts and shipping data point to persistent risks

Tim Waterer, chief market analyst at KCM, said the attacks "bring the potential for Iranian retaliation back into the equation," adding that this "raises the prospect of damage to energy infrastructure around the Gulf and adds fresh uncertainty for shipping through the Strait of Hormuz." He noted that "both of those risks are being reflected in the firmer tone in crude prices," according to all three sources.

Shipping data from Kpler showed the number of visible commodity vessels transiting the Strait of Hormuz dropped to five per day over the weekend, below the 10-day average of around 14. None of the five ships were liquid tankers, The Irish Times reported. The waterway carried about a fifth of global oil supplies before the war erupted in late February.

Iran shut the Strait of Hormuz after the US and Israel attacked the country on February 28, according to all three outlets. Efforts by mediators including Qatar and Oman to broker a deal to reopen the waterway have so far failed to gain traction.

Tanker attack reported

The United Kingdom Maritime Trade Operations agency (UKMTO) said on Tuesday a tanker reported being struck by three projectiles while sailing out of the Strait of Hormuz, highlighting the risks that remain to shipping and oil supply. No casualties or environmental impact were reported, according to The Economic Times, The Irish Times, and The Straits Times.

ANZ analysts said satellite tracking firms suggest oil flowing through Hormuz is around 6 million barrels per day, well below pre-conflict levels, The Irish Times reported. US inventories are nearing minimum levels, the outlet added.

Venezuela deal and market outlook

On August 28, Trump announced a deal with Venezuela to control oil reserves in the country, which he later said would help replenish the US Strategic Petroleum Reserve, near a 44-year low, as reported by The Economic Times and The Straits Times. US companies Chevron, GE Vernova, India's ONGC, Italy's Eni and Colombia's GeoPark are expected to sign final agreements in Venezuela, according to five sources cited by The Straits Times on August 31.

Analysts polled by Reuters expect oil prices to remain above $80 a barrel in 2026, all three outlets reported.