Oil prices rose during Asian trading as U.S. President Donald Trump threatened further strikes against Iran, reinforcing concerns that renewed hostilities could prolong disruptions to energy flows through the Strait of Hormuz.
Brent crude futures for November delivery climbed around 1.5% to $91.87 a barrel, while West Texas Intermediate crude futures rose about 1.6% to $87.15 a barrel.
Both contracts had closed nearly 3% higher in the previous session, extending a strong recovery after renewed confrontation between the United States and Iran brought the security of the Strait of Hormuz back to the center of attention in the oil market.
The latest escalation came after U.S. forces launched strikes against Iranian military sites on Larak Island, ending several weeks without direct attacks.
Iran responded by launching missiles at U.S. military facilities in Jordan, prompting Trump to promise a strong response and raising concerns that continued fighting could pose a greater threat to shipping through the strategic waterway.
The Strait of Hormuz remains the main focus for the oil market as traders closely monitor whether the latest escalation will push tanker operators to avoid the route, potentially threatening the recovery in crude flows seen during recent weeks.
An oil tanker was struck by three unidentified projectiles while leaving the strait, according to a warning from the United Kingdom Maritime Trade Operations agency, providing another sign of the continuing risks facing commercial shipping in the region.
At the same time, supply concerns have partly overshadowed efforts by OPEC Plus producers to increase output. The group agreed to an additional production quota increase of around 188,000 barrels per day beginning in September, continuing its plan to unwind previous voluntary production cuts.
Russia’s decision to extend its diesel export ban until September 30 has also added to concerns over refined fuel supplies.
Trump also said oil provided by Venezuela under a recently announced agreement would be used to refill the U.S. Strategic Petroleum Reserve, which has fallen close to its lowest level in 44 years.
Strategic reserve inventories currently stand at around 290 million barrels, although it remains unclear how quickly the agreement with Venezuela could translate into additional crude supplies.
Oil prices are rising against a backdrop of growing concerns about global supply security, with markets focusing closely on developments around the Strait of Hormuz, one of the most important routes for global oil trade.
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