Oil prices jumped nearly 3% on Tuesday as renewed Iranian attacks on the United Arab Emirates reignited global supply fears and disrupted key shipping routes.
Brent crude rose 2.6% to $102.78 per barrel, while U.S. West Texas Intermediate gained 2.7% to $96.01, recovering from prior session losses.
Markets rebounded after sharp declines, as limited tanker movement through the Strait of Hormuz briefly eased concerns before fresh geopolitical tensions emerged.
The strait, a critical chokepoint handling about 20% of global oil and LNG trade, remains largely restricted, heightening risks of supply shortages.
Analysts warn the situation remains volatile, with potential attacks on tankers capable of escalating tensions and further tightening energy markets.
Global responses have been mixed, with U.S. allies resisting calls to deploy naval escorts, adding uncertainty to efforts securing vital shipping lanes.
The United Arab Emirates has reportedly cut oil output significantly due to disruptions, contributing to rising crude benchmarks across the Middle East.
Experts say prices could climb further, with some forecasts pointing to $124 per barrel, as policymakers consider strategic reserve releases to stabilize markets.
