Oil prices climb as US, Iranian attacks stoke fears of escalation

What the report says

Oil prices rose at the start of the week as renewed US-Iran hostilities raised concerns about a wider escalation in the Middle East. Al Jazeera reported that Brent crude, the global benchmark, climbed above $91 a barrel on Tuesday after gaining more than 2.5% the previous day. The move followed US strikes on Iran’s Larak Island and Iranian attacks on two bases used by US forces in Jordan.

The report said tensions have unsettled energy markets because of the Strait of Hormuz, a vital shipping route for a large share of global oil flows in peacetime. A temporary ceasefire between the US and Iran expired in mid-August without a lasting agreement, and oil has since traded in a broad range after briefly nearing $94.40 a barrel on August 21. Traffic through the strait remains constrained, with some vessels turning off tracking systems to reduce exposure to drones, missiles or interception.

US President Donald Trump said in a television interview that Washington would respond forcefully to the Iranian attacks. No one claimed responsibility for a separate tanker strike reported by the UK Maritime Trade Operations in the strait, and no casualties were reported. Market analysts cited by Al Jazeera said prices could stay elevated if the conflict continues, though they could ease if the latest flare-up cools and shipping normalizes.