Oil prices inched higher on Tuesday after renewed tensions between the US and Iran brought the risk of supply disruptions in the Middle East back to the forefront.Brent crude rose 55 cents, or 0.61%, to $91.04 while WTI crude was up 79 cents, or 0.92%, at $86.55 a barrel, around 7:30 am IST.The latest rise came after a sharp jump in the previous session. Brent ended Monday 2.7% higher, having earlier touched its strongest level since August 25. WTI settled 2.8% higher after reaching its highest since August 21.The renewed concerns followed the first direct exchange of attacks between the US and Iran in a month on Sunday. US President Donald Trump on Monday threatened further strikes against Iran, escalating tensions after the conflict had recently shifted towards an economic standoff.For oil markets, the situation around the Strait of Hormuz remains a key concern. Only five visible commodity vessels a day were seen transiting the waterway over the weekend, according to shipping data from Kpler.The strait carried about a fifth of global oil supplies before the war began in late February. Iran closed the waterway after the US and Israel attacked the country on February 28.Mediation efforts by Qatar and Oman to secure a deal to reopen the Strait of Hormuz have so far failed to gain traction. The continuing uncertainty around shipping was underscored on Tuesday when the United Kingdom Maritime Trade Operations agency (UKMTO) said a tanker had reported being struck by three projectiles while sailing out of the strait. There were no casualties or environmental impact reported.Alongside the disruption risks in the Middle East, developments in Venezuela are also in focus as the US looks to replenish its oil reserves. Trump announced a deal with Venezuela on Friday to control oil reserves in the country and later said it would help replenish the US Strategic Petroleum Reserve, which is near a 44-year low.Energy companies are also moving towards agreements on projects in Venezuela. Indian oil giant ONGC, Chevron and GE Vernova of the US, Italy’s Eni and Colombia’s GeoPark are on track to sign final agreements after months of negotiations to firm up energy projects in the OPEC country, five sources close to the preparations said on Monday.The Strategic Petroleum Reserve itself fell further last week, with crude inventories declining by about 3.1 million barrels to 286.6 million barrels.With shipping disruptions continuing, analysts polled by Reuters in August expect oil prices to stay above $80 a barrel in 2026.
