Global oil prices rose on Tuesday as mounting concerns over the escalating conflict between Iran and Israel raised the specter of broader regional unrest and potential disruptions to crude supplies from the Middle East—a critical hub for global energy production.
As of 03:40 GMT, Brent crude futures climbed 34 cents, or 0.5%, to $73.57 per barrel. U.S. West Texas Intermediate (WTI) crude rose 29 cents, or 0.4%, to $72.06. Earlier in the session, both benchmarks had surged more than 2% before easing slightly.
The rebound follows a dip of over 1% on Monday, when markets reacted to reports suggesting Iran was seeking to de-escalate tensions. However, optimism was short-lived after renewed hostilities and alarming developments reignited fears of a prolonged confrontation.
Tensions flared anew after former U.S. President Donald Trump posted on social media urging “everyone” to evacuate Tehran. The message came as the conflict entered its fifth day, with Iranian media reporting explosions and heavy anti-aircraft fire in the capital. Meanwhile, air raid sirens were triggered in Tel Aviv in response to missile threats.
“The conflict between Iran and Israel is still fresh and brewing, and investor sentiments may still be holding on to the ‘war risks’,” said Priyanka Sachdeva, senior market analyst at Phillip Nova. “Added volatility and caution ahead of the Fed policy decision are further ensuring higher-paced price reactions in oil,” she added, referring to the U.S. Federal Open Market Committee (FOMC) meeting beginning Tuesday.
The oil market remains on edge, with traders closely monitoring developments. Iran is the third-largest oil producer in the Organization of the Petroleum Exporting Countries (OPEC), and any disruption to its exports could tighten global supply and push prices higher.
Further complicating the geopolitical landscape, U.S. media reported late Monday that Trump is exploring renewed negotiations with Iran over a potential nuclear agreement. Simultaneously, reports emerged of a maritime incident involving shipping vessels in the Gulf of Oman, underlining the increasing risks to oil transport in the region.
As uncertainty prevails, market watchers are bracing for continued volatility, with geopolitical risks and central bank policy decisions shaping the near-term direction of oil prices.
