Oil surpasses $90 as US-Iran tensions tighten Strait of Hormuz
Oil prices edged above $90 a barrel after renewed US-Iran hostilities revived fears of supply disruptions, with the Strait of Hormuz largely closed.
Oil markets nudged higher on Tuesday, with Brent reaching $91.04 a barrel and WTI $86.55, as renewed US-Iran hostilities revived supply-risk worries. The latest rise followed a sharp jump the previous day, after the first direct exchange of attacks between the two nations in a month. Shipping data showed only five commodity vessels transited the Strait of Hormuz over the weekend, and the United Kingdom Maritime Trade Operations reported a tanker struck by three projectiles, though no casualties occurred.
Iran had closed the strait after US and Israeli strikes in late February, and mediation by Qatar and Oman has not reopened it. In parallel, the United States disclosed a deal with Venezuela aimed at replenishing its Strategic Petroleum Reserve, which sits near a 44-year low, and several companies—including ONGC, Chevron, GE Vernova, Eni and GeoPark—are finalising energy projects in Venezuela. Analysts surveyed by one outlet in August anticipate oil to remain above $80 per barrel in 2026.
Why it matters
Higher oil prices and disrupted shipping raise fuel costs worldwide and affect energy security.
How this story developed
- Jul 20 U.S. and Iran intensify air strikes over Strait of Hormuz, diplomacy stalls
- Aug 29 Iran’s foreign minister announced that Tehran is still ready for diplomatic engagement if Washington ends its pressure tactics.
- Aug 29 U.S. forces have cleared mines in the Strait of Hormuz and are escorting roughly 1,500 commercial vessels through the passage.
- Aug 30 The United States hit Lark Island in southern Iran, targeting rocket launchers, marking its first attack on the country since late July.
- Aug 30 Ayatollah Mojtaba Khamenei appointed hard‑line allies to senior security positions.
- Aug 30 Treasury filed a draft regulation that could block the UAE branches of Banque Misr from U.S. correspondent banking.
- Aug 31 Iran appointed senior Revolutionary Guard and security officers to key posts, tightening internal leadership.
- Aug 31 Bessent announced that secondary sanctions will be issued on a weekly basis.
- Aug 31 Donald Trump posted an AI-generated video showing Iran's Kharg Island oil terminal exploding, despite no confirmed strike on the site.
- Aug 31 The Centre for Economics and Business Research forecasts an average UK household will lose about £2,400 in real income by 2027 because of the conflict.
- Aug 31 Iranian media claimed a bulk carrier was seized and an oil supertanker hit mines, while U.S. officials said no vessels were struck.
- Aug 31 Trump announced he would deliver a forceful blow to Iran.
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