Oil Tops $91 as Fresh U.S.-Iran Fighting Revives Hormuz Supply Fears

Oil prices climbed sharply on Tuesday as renewed U.S.-Iran exchanges of fire reignited fears of supply disruptions from the Persian Gulf, with Brent crude rising to $91.48 per barrel and West Texas Intermediate reaching $86.97 per barrel, both up more than $1 from Monday. President Trump issued a fresh warning to Iran following the first exchange of fire in weeks, sending equities lower as traders repriced Middle East risk.

The price moves reflect how severely constrained Gulf oil flows already are. Shipping data cited by Reuters shows tanker traffic through the Strait of Hormuz remains a fraction of pre-war levels, with daily oil flows out of the Persian Gulf averaging just 6 million barrels according to Kpler data, a sharp decline from normal volumes. The national average U.S. gasoline price had already risen 36 percent since the conflict began, reaching $4.06 per gallon as of late August.

The latest flare-up comes after a 60-day U.S.-Iran memorandum of understanding, signed in June, expired without a lasting peace deal, and Trump declined to seek an extension. With diplomacy stalled, the resumption of fighting reinforced market concern that a durable Hormuz reopening remains out of reach, keeping a significant portion of global crude supply effectively locked in or rerouted around the Gulf.