Oil prices extended gains in Asian trading on Tuesday as U.S. President Donald Trump threatened further strikes against Iran after fresh hostilities raised concerns about prolonged disruptions to energy flows through the Strait of Hormuz.

As of 20:20 ET (00:20 GMT), Brent Oil Futures expiring in November rose 0.7% to $91.08 per barrel, while West Texas Intermediate (WTI) crude futures climbed 1% to $86.60 per barrel.

Brent futures rose 3% in the previous session, while WTI futures jumped 3.6%.

The latest escalation came after U.S. forces struck Iranian military targets on Larak Island, ending a weeks-long lull in direct attacks.

Iran subsequently launched missiles at U.S. military facilities in Jordan, prompting Trump to pledge a strong response and raising fears that fighting could further threaten shipping through the strategic waterway.

The Strait of Hormuz remains the market’s central concern, with the passage serving as a critical export route for crude and petroleum products from major Middle Eastern producers.

A tanker was struck by three unidentified projectiles on Monday while exiting the strait, according to a warning from the United Kingdom Maritime Trade Operations agency, underscoring the continued risks to commercial shipping in the region.

Meanwhile, supply concerns have partly overshadowed efforts by OPEC+ producers to increase output. The group had approved an additional production quota increase of about 188,000 barrels per day from September, completing the planned rollback of earlier voluntary cuts.

Russia’s decision over the weekend to extend its diesel export ban until Sept. 30 also added to concerns over refined fuel supplies.

Moreover, Trump said on Sunday that oil secured under a newly announced deal with Venezuela would be used to replenish the U.S. Strategic Petroleum Reserve, which has fallen to near its lowest level in 44 years.

The reserve stood at about 290 million barrels as of Aug. 21 after years of drawdowns, while it remains unclear how quickly the Venezuelan deal could translate into additional crude supplies.

Source: Investing.com

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