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Oil Prices Skyrocket Over 6 Percent Amid Middle East Tensions
(MENAFN) Oil prices rocketed more than 6% Tuesday as the closure of the Strait of Hormuz and intensifying Middle East hostilities stoked acute fears of a global supply crunch, sending Brent crude to its highest level since January 2025.
Brent crude was trading at $82.82 per barrel as of 13:39 Tuesday (1039 GMT), a 5.97% jump from Monday's closing price of $78.15 — itself reached after touching a daily high of $79.85. The benchmark had closed last week at roughly $73 per barrel, meaning prices have surged nearly $10 in a matter of days. Brent futures hit $82.80 Tuesday, eclipsing Monday's multi-month peak of $82.37.
West Texas Intermediate (WTI) crude tracked the rally, climbing 6.6% to $76.08 per barrel.
The price explosion is being driven by a singular and growing fear: that the Strait of Hormuz — the narrow chokepoint through which approximately one-fifth of the world's oil flows — may be effectively sealed off. Ebrahim Jabbari, a senior adviser to Iran's Revolutionary Guard Corps (IRGC) commander-in-chief, formalized that threat Monday, announcing the strait's closure to all traffic and warning that any vessel attempting to traverse the waterway would be targeted.
Jabbari escalated the warnings further, signaling that oil pipelines across the region could also be struck — a prospect that sent additional shockwaves through energy markets already rattled by the ongoing US-Israeli offensive on Iran.
The strikes, now in their fifth day, have killed Supreme Leader Ali Khamenei and multiple senior Iranian officials, prompting Tehran to retaliate with drone and missile attacks against Israel and Gulf states hosting US military assets. The conflict has also forced QatarEnergy to suspend liquefied natural gas (LNG) production after two of its facilities were struck by drones Monday — compounding the supply shock rippling through global energy markets.
With no ceasefire in sight and rescue operations still active across Iran, analysts warn that further escalation could push prices well beyond current levels.
Brent crude was trading at $82.82 per barrel as of 13:39 Tuesday (1039 GMT), a 5.97% jump from Monday's closing price of $78.15 — itself reached after touching a daily high of $79.85. The benchmark had closed last week at roughly $73 per barrel, meaning prices have surged nearly $10 in a matter of days. Brent futures hit $82.80 Tuesday, eclipsing Monday's multi-month peak of $82.37.
West Texas Intermediate (WTI) crude tracked the rally, climbing 6.6% to $76.08 per barrel.
The price explosion is being driven by a singular and growing fear: that the Strait of Hormuz — the narrow chokepoint through which approximately one-fifth of the world's oil flows — may be effectively sealed off. Ebrahim Jabbari, a senior adviser to Iran's Revolutionary Guard Corps (IRGC) commander-in-chief, formalized that threat Monday, announcing the strait's closure to all traffic and warning that any vessel attempting to traverse the waterway would be targeted.
Jabbari escalated the warnings further, signaling that oil pipelines across the region could also be struck — a prospect that sent additional shockwaves through energy markets already rattled by the ongoing US-Israeli offensive on Iran.
The strikes, now in their fifth day, have killed Supreme Leader Ali Khamenei and multiple senior Iranian officials, prompting Tehran to retaliate with drone and missile attacks against Israel and Gulf states hosting US military assets. The conflict has also forced QatarEnergy to suspend liquefied natural gas (LNG) production after two of its facilities were struck by drones Monday — compounding the supply shock rippling through global energy markets.
With no ceasefire in sight and rescue operations still active across Iran, analysts warn that further escalation could push prices well beyond current levels.
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