Oil prices moved higher during Asian trading on Tuesday as renewed tensions between the United States and Iran raised concerns about further disruption to energy flows through the Strait of Hormuz.
U.S. President Donald Trump also threatened additional military action against Iran, adding to fears that the conflict could escalate further.
At 01:02 ET (05:02 GMT), Brent crude futures for November rose 1.1% to $91.51 per barrel.
Meanwhile, West Texas Intermediate crude futures climbed 1.4% to $86.99 per barrel.
Both contracts had already settled nearly 3% higher in the previous session.
U.S.-Iran Conflict Raises Supply Concerns
The latest escalation followed U.S. strikes on Iranian military targets on Larak Island.
The attack ended a period of several weeks without major direct strikes between the two countries.
Iran later responded by launching missiles at U.S. military facilities in Jordan.
Trump then pledged a strong response, increasing concerns that further military action could threaten oil shipments in the region.
Strait of Hormuz Remains Key Focus for Oil Markets
The Strait of Hormuz remains one of the most important risks facing global energy markets.
The waterway is a critical export route for crude oil and petroleum products from major producers across the Middle East.
Any prolonged disruption could reduce global oil supply and push prices higher.
Concerns increased further after a tanker was reportedly struck by three unidentified projectiles on Monday while leaving the strait.
The United Kingdom Maritime Trade Operations agency issued a warning following the incident, highlighting the continued risks facing commercial shipping.
OPEC+ Supply Increase Fails to Ease Concerns
Growing geopolitical risks have partly overshadowed efforts by OPEC+ to increase oil production.
The group previously approved an additional production quota increase of around 188,000 barrels per day from September.
The increase completes the planned reversal of earlier voluntary production cuts.
However, traders remain more focused on the possibility of supply disruptions from the Middle East.
Russia Extends Diesel Export Ban
Russia has also contributed to concerns over global fuel supplies.
The country decided over the weekend to extend its diesel export ban until September 30.
The move could tighten supplies of refined fuel products and add further upward pressure to energy markets.
U.S. Plans to Refill Strategic Petroleum Reserve
Trump also said that oil secured under a recently announced agreement with Venezuela would be used to replenish the U.S. Strategic Petroleum Reserve.
The reserve has fallen close to its lowest level in more than four decades following years of drawdowns.
It held approximately 290 million barrels as of August 21.
However, it remains uncertain how quickly the Venezuela agreement could result in additional crude supplies reaching the United States.
Oil Market Outlook Remains Tied to Iran Conflict
For now, traders remain focused on developments between the United States and Iran.
Further escalation could increase the risk of disruptions through the Strait of Hormuz, potentially supporting higher Brent and WTI crude prices.
At the same time, OPEC+ production increases, Russian fuel policy and U.S. efforts to rebuild strategic reserves will remain important factors shaping the global oil market.
