Oil prices jumped roughly 3% on Tuesday after renewed Iranian strikes on the United Arab Emirates stoked fresh supply fears, with the Strait of Hormuz largely disrupted and several U.S. allies rejecting President Trump’s call to deploy warships to secure shipping through the strategic waterway.
Brent crude climbed $3.27, or 3.3%, to $103.48 a barrel, while U.S. West Texas Intermediate rose $3.14, or 3.4%, to $96.64 a barrel.
Iran carried out new attacks on the UAE’s Shah gas field, which remains non-operational, and targeted Fujairah port, halting loading operations by state oil firm ADNOC.
Fujairah, situated near the Strait of Hormuz, handles oil volumes equivalent to about 1% of global demand.
The Strait, a key passage for roughly 20% of the world’s oil and liquefied natural gas trade, has seen major disruptions as the U.S.-Israeli conflict with Iran enters its third week.
The partial closure has forced the UAE, OPEC’s third-largest producer, to slash output by more than half.
Analysts caution that the situation remains precarious. “It only takes one Iranian militia to fire a missile or plant a mine on a passing tanker to reignite the entire situation,” said IG Markets analyst Tony Sycamore.