Global oil prices surged again on Tuesday, with Brent crude rising more than 5% to $82 per barrel, its highest level since January 2025, as escalating hostilities in the Middle East rattled energy markets and reignited fears of a broader supply disruption.
The rally builds on earlier gains this week, reinforcing concerns that crude could climb even higher if geopolitical risks intensify.
US benchmark West Texas Intermediate (WTI) crude also advanced sharply, jumping more than 8% toward $77 per barrel after a roughly 6% surge in the previous session. The twin rallies reflect mounting anxiety over the potential closure of the Strait of Hormuz, one of the world’s most critical oil transit chokepoints.
The Strait of Hormuz accounts for roughly one-fifth of global oil shipments. However, tanker flows through the strategic waterway have effectively stalled amid heightened security threats. A senior Iranian official reportedly warned that vessels attempting to transit the strait could be targeted, escalating fears of a supply chokehold.
Adding to market unease, former US President Donald Trump stated that the United States would do “whatever it takes” when asked how long the war with Iran could persist. A senior US official also indicated that Washington was preparing a significant escalation in strikes on Iran within the next 24 hours, potentially targeting missile production facilities, drone infrastructure, and naval assets.
Meanwhile, Saudi Aramco temporarily suspended operations at its Ras Tanura refinery, the kingdom’s largest, as it assessed damage following a reported drone strike on the facility. Any prolonged disruption at Ras Tanura could further tighten global supply at a time when markets are already on edge.
Traders now warn that if hostilities broaden or if the Strait of Hormuz is fully shut down, crude prices could spike well beyond current levels. For now, energy markets remain locked in a geopolitical risk premium, one that appears to be growing by the day.
