Brent Near Five-Month High At $110 After Iran Signals Tighter Control On Hormuz

Global crude oil prices advanced on Tuesday as renewed tensions around the Strait of Hormuz raised concerns about further disruptions to energy supplies from the Middle East.

Brent crude futures gained 0.29% to $109.87 per barrel, approaching a five-month high, while US benchmark West Texas Intermediate (WTI) rose 0.24% to $103.91 per barrel.

Oil markets remained sensitive to developments in the Persian Gulf, where the continuing US-Iran conflict has threatened shipping activity and regional energy infrastructure.

Brent prices have surged nearly 80% this year amid escalating hostilities in the Middle East and the Russia-Ukraine war.

Iran Warns Of Greater Control Over Hormuz

Iran's First Vice President Mohammad Reza Aref indicated that Tehran could strengthen its control over the Strait of Hormuz to protect national security.

According to state-run news agency IRNA, Aref said Iran had no alternative but to assert control over the strategic waterway.

He also suggested that Tehran could guarantee safe passage for vessels belonging to countries it considers friendly.

However, Aref blamed Washington for the prevailing crisis and warned that the United States would face consequences.

The comments heightened concerns about shipping security along one of the world's most important oil transportation routes.

Meanwhile, reported Houthi attacks on a military training facility in Yemen and renewed strikes targeting Saudi energy, airport and military installations added to market uncertainty.

Gulf Oil Exports Recover Despite Supply Disruptions

Despite the heightened geopolitical risks, crude shipments from the Gulf have shown signs of recovery.

US Energy Secretary Chris Wright told Fox News that regional oil flows had rebounded to approximately 80% of their levels before the conflict.

However, shipments of refined petroleum products remained restricted, indicating that supply-chain pressures had not fully eased.

Iraq has also reported improving export volumes.

The country's oil minister said crude shipments had exceeded 3.4 million barrels per day so far this month.

Exports from the Organization of the Petroleum Exporting Countries (OPEC) member are approaching prewar levels after Iraq offered substantial discounts against regional oil benchmarks.

The recovery in shipments could help moderate supply concerns, although further attacks or shipping restrictions may keep crude prices volatile.