Oil prices have shown an upward trend since the third day as the US-Israel conflict with Iran widened as it has threatened to blow up any vessel passing through the Strait of Hormuz, which disrupted the world supply. Brent crude futures were at $79.44 a barrel, up $1.70 or 2.2% on Tuesday, March 3.
Earlier on Monday, the contract surged as high as $82.37, the highest since January last year, though it pared those gains to settle 6.7% higher. US West Texas Intermediate crude also jumped $1.17 or 1.6% to $72.40 a barrel. In the previous session, the contract initially climbed to its highest since June 2025 before sliding back to still settle up 6.3%.
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“With no quick de-escalation in sight, the Strait of Hormuz effectively closed and Iran showing a willingness to target energy infrastructure in the region, upside risks remain and they grow the longer the conflict drags on,” Tony Sycamore, IG market analyst, was quoted by Reuters as saying.
Shipping through the strait, which carries one-fifth of the oil consumed globally as well as large quantities of gas, has ground to a near halt amid Iranian attacks on oil tankers in the region. A commander in Iran’s Revolutionary Guard Corps (IRGC) said on Monday that the strait was “closed” and that any vessel attempting to pass through the waterway would be set “ablaze.” Also Follow | US-Israel-Iran War LIVE Updates.
At least five tankers have been damaged, two personnel killed and about 150 ships stranded around the strait, which separates Iran and Oman.