Oil prices continue to rise amid ongoing US-Iran tensions

Oil prices continue to increase on Tuesday as re-escalating tensions between the US and Iran increase concerns over possible disruptions to oil shipments through the Strait of Hormuz.

Brent crude futures increased by 1.4% to $98.5 per barrel as of 0630GMT, hitting a six-week high.

West Texas Intermediate (WTI) crude futures also increased 1.4% to $94 per barrel.

On Tuesday, Yemen’s Houthi group targeted cities and economic infrastructure in southern Saudi Arabia, causing deaths, according to the Saudi-led military coalition.

In addition, fires broke out at energy facilities in southern Saudi Arabia following attacks targeting the sites, the Saudi Energy Ministry announced.

On Monday, Iran’s Islamic Revolutionary Guard Corps (IRGC) said that it had targeted and destroyed a US military tethered surveillance aerostat in a drone strike near Erbil airport in northern Iraq.

Mohsen Rezaei, the secretary of Iran’s Supreme National Security Council, said on Monday that Iran will declare a new “restricted” maritime zone outside the Strait of Hormuz in the coming days, warning that any vessel entering the area would be placed on a sanctions list.

Yemeni Coast Guard forces also intercepted an oil tanker on Sunday after it unloaded an “unauthorized” cargo at the Houthi-held Ras Isa port in Al-Hudaydah governorate, government media reported.

The two countries signed a memorandum of understanding in June, mediated by Pakistan and Qatar, outlining steps toward ending hostilities, reopening the Strait of Hormuz and addressing economic restrictions.

The two sides have since accused each other of failing to implement commitments under the memorandum, while military tensions have continued alongside disputes over sanctions and navigation through the Strait of Hormuz.