Brent crude hovered close to the USD 115 mark on Tuesday, holding near recent highs as escalating tensions in the Middle East stoked fears of supply disruption through the critical Strait of Hormuz. The global benchmark was trading around USD 113.8 per barrel in volatile deals, while U.S. West Texas Intermediate (WTI) gained to trade higher at USD 104.8.
The latest gains follow a surge driven by renewed hostilities around the Strait of Hormuz, a narrow waterway that carries roughly a fifth of global oil flows. Tensions escalated after Iran‑linked strikes targeted South Korea-linked cargo vessels.
After Iran reportedly targeted a South Korean cargo ship, tensions escalated further as the United States said it destroyed six Iranian small boats, a claim Tehran denied, while Iran in turn claimed to have hit a U.S. frigate, which Washington rejected. The U.S. strongly advised Iran to stay clear of its military assets, with President Donald Trump warning that Iranian forces would be “blown off the face of the Earth” if they attacked American ships. Washington has since launched “Project Freedom” to safeguard commercial navigation through the Strait, even as Iran’s military vowed to strike any U.S. forces entering the waterway.
Trump also said he was reviewing a new Iranian proposal but expressed scepticism over its intent. Meanwhile, shipping giant Maersk confirmed one of its U.S.-flagged vessels had exited the Strait of Hormuz, while the UAE reported responding to multiple missile threats, including a fire at an oil facility in Fujairah. Iran, however, warned that UAE interests would become targets if it takes action. In a strongly worded remark, Trump said, “We’ve shot down seven small boats, or as they call them ‘fast’ boats, it’s all they have left.”
Further, U.S. President Donald Trump said the Iran conflict could stretch on for another two to three weeks, adding that time is not a critical factor for Washington. He reiterated that Iran must hand over enriched uranium and insisted the country cannot be allowed to develop a nuclear weapon. Trump also said he looks forward to meeting Chinese President Xi, calling it “very important,” while asserting the U.S. economy remains strong despite what he described as a “mini war.” He further alleged that Iran fired at neutral ships during “Project Freedom” operations, with a South Korean cargo vessel targeted amid rising Strait tensions, though he noted there has been no major damage to key shipping routes so far.
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