Oil prices climbed to their highest level in four weeks on Tuesday after the United States reinstated a naval blockade on Iran and intensified military strikes, while Tehran stepped up retaliatory attacks in and around the Strait of Hormuz, raising fresh concerns over global energy supplies.Brent crude futures rose $1.68, or 2%, to $84.98 a barrel, while US West Texas Intermediate (WTI) crude gained $1.65, or 2.1%, to $79.79 a barrel in early trade. Brent had already surged 9.6% in the previous session, marking its biggest single-day gain since May 2020.The latest rally pushed oil prices to their highest levels since the US and Iran signed a memorandum of understanding on June 17 aimed at ending the conflict, Reuters reported.This comes after US President Donald Trump announced that Washington had reimposed a blockade on Iranian shipping in the Strait of Hormuz and said the United States would seek reimbursement from countries benefiting from its naval protection.“We’re hitting them very hard. And it’ll continue, and we’ll see what happens,” Trump told reporters in the Oval Office. “We’re knocking out all of their offensive capability and we’re controlling the straits. We’re putting the blockade back,” he added.He also said the US would charge for securing maritime traffic through the strategic waterway. The move marks a major shift from longstanding US policy supporting unrestricted navigation through the Strait of Hormuz, one of the world’s busiest oil shipping routes.The renewed military confrontation has sharply increased tensions across the Gulf. According to the United Arab Emirates ministry of defence, two UAE oil tankers were struck by Iranian cruise missiles while sailing through the southern lane of the Strait of Hormuz in Omani territorial waters. The attack killed one Indian crew member and injured eight others.Iran also launched attacks targeting Bahrain, while fighting spread elsewhere in the region. Meanwhile, the US Central Command (CENTCOM) confirmed that American forces had begun a third consecutive night of strikes against Iranian military targets.“These strikes will continue imposing a heavy cost on Iranian forces and degrade their ability to attack innocent civilians and commercial shipping in the Strait of Hormuz,” the US military said.Shortly after the announcement, Trump described the operation as “another major attack.” Meanwhile, Iran’s semi-official YJC news agency reported seven explosions in the port city of Bandar Abbas and two more on Kish Island, indicating continued US strikes on strategic locations.Earlier on Monday, Brent crude had climbed over 5% after both Washington and Tehran claimed control over the Strait of Hormuz. During Asian trading on Tuesday, Brent rose another 2% to nearly $85 a barrel, while WTI approached $80 a barrel.Although prices remain well below the wartime peak of nearly $120 per barrel, analysts warned that continued military escalation could trigger further volatility in global energy markets.The uncertainty also weighed on Wall Street. On Monday, the S&P 500 fell 0.7%, the Dow Jones Industrial Average slipped 0.4%, while the Nasdaq Composite dropped 1.4%, as investors reacted to rising geopolitical risks and higher oil prices.
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