Oil prices jumped on Tuesday, and European gas prices reached a three‑year peak, as fresh US strikes on Iran and Tehran’s threats of retaliation intensified concerns over the Strait of Hormuz.
West Texas Intermediate (WTI) crude for October delivery climbed 5.20% to $90.22 a barrel, surpassing the $90 level for the first time since late July.
North Sea Brent crude for November delivery rose 4.60% to $94.65 a barrel.
The United States launched strikes on Iran for a second straight day, while Tehran announced a “decisive” retaliatory operation. President Donald Trump warned he would respond with a “much stronger and more powerful” assault if needed.
Carsten Fritsch, an analyst at Commerzbank, said that hopes of reopening the Strait of Hormuz to shipping had been “dealt a severe blow” last week. He questioned whether unofficial maritime traffic could continue unmolested amid the fresh escalation.
The US strikes followed shortly after two oil tankers were struck by projectiles of unknown origin as they exited the Strait of Hormuz, according to Greek maritime risk management firm Marisks.
Edward Rosenberg, an analyst and head of ETFs at Strategy Shares, warned that “the longer the war with Iran goes on, oil prices will stay elevated and volatile.” He noted that sanctions, stalled negotiations, and mixed signals about Iran’s desire for an end to hostilities are causing prices to swing day by day rather than simply remain high.
