Oil prices surge over 2% as Brent nears $100 on US-Iran tensions

International benchmark Brent crude surged more than 2% on Tuesday to climb above $99 a barrel, driven by mounting fears of supply disruptions from the Middle East as military exchanges between the United States and Iran escalated over the weekend, according to Anadolu Agency.

Gulf clashes escalate

The US military struck three Iranian oil tankers on Saturday following Iran’s launch of ballistic missiles at two American Navy warships in the Gulf, according to military statements. Energy markets gained further momentum on Monday after facilities operated by Saudi Aramco were hit in fresh attacks, with Iran-backed Houthi militants saying they carried out strikes on the 400,000-barrel-per-day Jazan refinery and other installations supplying the kingdom’s domestic market.

Hormuz restrictions tighten

Tehran announced on Monday that it would establish a new shipping corridor with Oman in the Strait of Hormuz, requiring vessels to coordinate with Iranian authorities before entering a newly designated restricted maritime zone around the critical chokepoint. The move threatens to complicate tanker traffic through the waterway that handles a significant portion of global oil shipments, amplifying concerns that the ongoing conflict could disrupt crude flows from the region.

The Strait of Hormuz serves as a vital artery for global energy shipments. Tuesday’s gains extended the rally that began with the weekend military exchanges, leaving Brent crude poised near the $100 level as markets assessed the risk of prolonged supply disruptions.