Oil prices extended gains on Tuesday, with Brent crude holding above $97 a barrel, as investors weighed risks of further disruption to Middle East energy supplies after Iran warned that oil and gas infrastructure across the Gulf could be targeted in retaliation for attacks on its assets.

Brent Oil Futures was last up around 0.1% at $97.20 a barrel, while U.S. West Texas Intermediate (WTI) crude futures rose 1% to $92.38.

Brent settled nearly 1% higher on Monday after briefly touching $98 per barrel in the previous session.

The latest gains came after a weekend of tit-for-tat strikes between the United States and Iran, including attacks on shipping.

Iranian officials have since warned that U.S. oil and gas interests and other energy infrastructure across the Gulf are vulnerable to retaliation.

"The oil and gas production chain here is sprawling, accessible, and exposed. American oil and gas companies across these waters and facilities share that exposure," Iranian Parliament Speaker Mohammad Baqer Qalibaf said.

"Strike our assets, and you get struck. We’ve already proven it," he added.

The Strait of Hormuz remains the key focus for oil markets. Iran has said it will introduce a new restricted zone in the Gulf and an alternative shipping corridor, raising concerns that tighter maritime controls could further slow tanker traffic through the strategic waterway.

Still, signs of diplomacy have offered some counterweight to the rally. Iran said a deal with Oman over arrangements for the Strait of Hormuz was close, potentially providing a mechanism to ease shipping disruptions.

But markets remain skeptical that diplomacy will quickly end the wider U.S.-Iran confrontation.

The conflict has already pushed Brent sharply higher. The benchmark gained 8% last week, while WTI rose nearly 10%.

Source: Investing.com

#latestnews #theshippingtribune #oilnews #oilprice #iranthreat #gulfenergy