Key facts
- Oil prices increased for a second consecutive day due to renewed US-Iran conflict impacting shipping routes.
- The US military struck dozens of Islamic Revolutionary Guard Corps targets following Iran's ballistic missile attacks.
- Iran claimed responsibility for strikes on US bases in Jordan and on tankers transiting the Strait of Hormuz.
- Brent futures fell 1.42% to $89.45 a barrel, and WTI crude fell 0.66% to $83.90 a barrel, following sharp gains in the previous session.
- Despite tensions, 39 commodity ships passed through the Bab el-Mandeb strait on Tuesday, the highest number since July 19.
Oil prices climbed for a second consecutive day as renewed attacks between the United States and Iran impacted oil flows through key shipping routes. Geopolitical tensions escalated after the U.S. military struck dozens of Islamic Revolutionary Guard Corps targets following Iran's ballistic missile attacks. Brent crude futures fell 1.42% to $89.45 a barrel, and US West Texas Intermediate (WTI) crude declined 0.66% to $83.90 a barrel. These declines followed sharp gains in the previous session. Despite the heightened tensions, preliminary shipping data indicated that 39 commodity ships passed through the Bab el-Mandeb strait into the Red Sea on Tuesday, the highest number since July 19. Market analyst Tony Sycamore noted that Iran's leverage over the Strait of Hormuz, a critical oil shipping route, may diminish as alternative routes are explored. Iran has rejected an Omani proposal for regional joint management of the strait. Further escalating regional fears, US-Saudi strikes targeted paramilitary forces in Iraq, marking Saudi Arabia's public participation in US air strikes.