Key facts
- Brent crude prices surged to a one-month high, approaching $85 per barrel.
- WTI crude prices advanced, nearing $80 per barrel.
- Oil prices have risen 12% since Friday due to renewed U.S.-Iran hostilities.
- The U.S. reinstated a blockade on Iranian oil exports, increasing war risk premiums.
- President Trump proposed a 20% fee on cargo through the Strait of Hormuz.
Oil prices extended Monday's surge into Asian trade on Tuesday, with Brent Crude prices hitting a one-month high. This advance is attributed to renewed war risk premiums amid escalating U.S.-Iran hostilities and the reinstated U.S. blockade of Iranian oil exports, which has disrupted calmer trade conditions observed in previous weeks. Both Brent and WTI benchmarks saw gains of approximately 2% in Asian trading, reaching their highest levels in weeks. The market is recalibrating expectations for traffic recovery through the Strait of Hormuz, which is now seen as a more challenging and continuously rising trend compared to mid-June levels. Brent Crude futures were approaching $85 per barrel, while WTI Crude was attempting to break above $80. The surge follows an 8% jump on Monday, triggered by weekend escalations and President Donald Trump's announcement of the U.S. blockade reinstatement. Analysts are questioning the feasibility and seriousness of Trump's proposed 20% fee for the U.S. acting as "Guardian of the Hormuz Strait," noting it would significantly increase costs per barrel compared to Iran's proposed toll.