Oil prices rose during Tuesday’s trading, with Brent crude holding above $97 per barrel, as investors assessed the risk of further disruption to Middle East energy supplies after Iran warned that oil and gas facilities across the Gulf could be targeted in response to attacks on its assets.
Brent crude futures for November delivery rose 1.6% to $98.73 per barrel, while U.S. West Texas Intermediate crude futures climbed 2.9% to $94.14 per barrel.
Brent had ended Monday’s session nearly 1% higher after briefly touching $98 per barrel in the previous session.
The latest gains came after Iran threatened to respond to what it described as a U.S. economic war by imposing a maritime exclusion zone across the Arabian Gulf.
These developments followed a series of reciprocal strikes between the United States and Iran over the weekend, including attacks targeting shipping activity.
Iranian officials later warned that U.S. interests in the oil and gas sectors, along with other energy facilities across the Gulf, could be exposed to an Iranian response.
Iranian Parliament Speaker Mohammad Bagher Ghalibaf said the region’s oil and gas production chain is wide, exposed, and easy to target, noting that U.S. oil and gas companies and related facilities in the region share the same level of vulnerability.
He added that targeting Iranian assets would be met with similar targeting, stressing that Tehran had already proven its ability to carry out its threats.
The Strait of Hormuz remains the main focus for oil markets, as Iran announced plans to impose a new restricted movement zone in the Gulf and create an alternative shipping corridor, raising fears that tighter maritime restrictions could further slow tanker traffic through this strategic route.
Mohsen Rezaei, secretary of Iran’s Supreme National Security Council, said on X that Washington had received a clear warning from Iran’s new missiles, and that any economic war would be met by imposing a maritime exclusion zone extending across the Gulf to the area around the U.S. blockade.
At the same time, Iran said an agreement with Oman on navigation arrangements in the Strait of Hormuz is close, which could provide a mechanism to ease disruptions facing shipping activity.
However, markets remain skeptical about the ability of diplomatic efforts to end the broader confrontation between the United States and Iran soon.
The confrontation has pushed oil prices sharply higher, with Brent crude jumping 8% last week, while West Texas Intermediate rose by nearly 10%.
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