Oil Rises for 3rd Day, Hormuz Risk Sparks Supply Concerns
Oil prices rose for a third day on Tuesday in Asia, fueled by the escalating US-Israel conflict with Iran and increasing threats to shipping lanes in the Strait of Hormuz. The market assessed the risk of supply disruptions from the Middle East, a key region for global energy production, as increasing signs of a rapid de-escalation were lacking.
Brent futures traded around US$79.44 per barrel (up 2.2%), while WTI rose to US$72.40 per barrel (up 1.6%). In earlier trading, Brent briefly touched its highest level since January 2025 before paring some of its gains, but still closed the session sharply higher.
Key market concerns centered on the Strait of Hormuz, a strategic route through which approximately 20% of the world's oil and gas supply passes. Several tankers and container ships have reportedly begun avoiding the route, while rising energy shipping costs have prompted some insurance companies to cancel coverage for vessels transiting the risky area.
An IG analyst assessed that as long as the conflict drags on and Iran demonstrates its willingness to target energy infrastructure, the risk of price increases remains. In addition to the risk to shipping flows, the market is also highlighting the potential damage to energy facilities in the Gulf states, which could trigger longer supply disruptions.
ING analysts stated that the market is still digesting the possibility of a broader escalation in the Middle East. They believe that, in addition to the Hormuz issue, a greater risk is if the attack spreads to additional energy infrastructure, as it could trigger more prolonged production or distribution outages.
Several institutions predict that oil prices will remain high in the coming days. Bernstein even raised its Brent 2026 price from US$65 to US$80 per barrel, estimating that an extreme scenario could push prices to US$120–US$150 if the conflict prolongs. Increases were also seen in food products such as diesel and gasoline, while market sentiment was also influenced by reports of lighting up operations at Saudi Arabia's largest domestic refinery following a drone attack. (asd)
Source: Newsmaker.id
