Oil prices rose more than 2% on Tuesday, reversing prior losses amid escalating fears over supply disruptions in the Strait of Hormuz.
Brent futures climbed to $102.69 a barrel, while U.S. West Texas Intermediate gained to $95.92. The strait, critical for 20% of global oil and LNG trade, remains largely closed due to ongoing U.S.-Israeli military actions against Iran.
Several U.S. allies declined President Donald Trump’s request to send warships to escort vessels, drawing sharp criticism. The UAE-OPEC’s third-largest producer-has cut output by over half amid the closure.
Iran has urged India to release three seized tankers as part of talks to secure safe passage for Indian-flagged ships. Meanwhile, the International Energy Agency hinted at further reserve releases to stabilize prices.
Bank of America raised its 2026 Brent forecast to $77.50, while Standard Chartered projected $85.50, citing two possible outcomes: a swift resolution by April or a prolonged disruption into Q2 that could push prices higher.