Crude oil climbed to about $88 a barrel on Tuesday, extending Monday’s 2.8% advance, as renewed hostilities between the US and Iran intensified worries about prolonged disruptions to energy flows through the Strait of Hormuz. US forces struck an island in the strategic waterway, prompting Iran to retaliate with attacks on US-linked targets in the UAE and Jordan—the first direct exchange of fire in roughly a month.
The security risks were underscored by reports that two supertankers were hit by unidentified projectiles while passing through the chokepoint. Even as tensions escalate, crude exports are still moving through Hormuz, though some tankers are said to be switching off their transponders. Major producers including Saudi Arabia, the UAE, Kuwait, and Iraq continue to ship barrels, but the risk of further incidents remains significant—especially after a tanker was reportedly struck by three unidentified projectiles near Oman as it exited the strait.
