FX.co ★ Crude Oil Rises on Escalating Middle East Tensions

Crude oil futures climbed to nearly $90.50 a barrel on Tuesday, their highest level since late July, after the US military launched new strikes on Iranian targets near the Strait of Hormuz, following attacks on two oil tankers in this critical shipping corridor. US President Donald Trump warned that Washington would deliver a significantly stronger response if Tehran retaliated. In turn, a senior Iranian military official vowed that Iran’s answer would be “many times greater,” cautioning that bases across the region could quickly come under Iranian fire. The standoff raises the risk of a prolonged conflict and deeper disruptions to crude exports from the area. At the same time, a major Ukrainian drone strike on Russia’s Ust-Luga oil export terminal in the Baltic Sea ignited a fire, as Kyiv continues to target Russian refineries and energy infrastructure.