• Oil prices reached their highest levels in four weeks due to US-Iran military tensions.
• Brent crude surged to $86.19 per barrel following renewed hostilities.
• The US reinstated its naval blockade of Iranian shipping in the Strait of Hormuz.
• Impacts on global energy supply chains are raising volatility in the oil market.
• Fighting between the US and Iran threatens to further disrupt oil transit through key waterways.

Oil prices have surged to a one-month high as escalating conflicts between the United States and Iran continue to raise concerns over energy supply disruptions in the Strait of Hormuz. Brent crude futures rose 2 percent on Tuesday, reaching approximately $86.19 a barrel, which is the highest price since June 12. US West Texas Intermediate (WTI) crude also saw gains, climbing to $79.67, following earlier increases of 9.6 percent in value the previous session, marking its most significant single-day gain since May 2020, according to Channel News Asia, India Times, and Al Jazeera.

The renewed hostilities began after US President Donald Trump announced the reinstatement of a naval blockade on Iranian shipping, aiming to control the critical Strait of Hormuz, which handles about a fifth of the world’s oil supply. Trump's administration also proposed transit fees for vessels, emphasizing that the US will act as the "guardian" of the strait. The UAE confirmed that two of its oil tankers were recently struck by Iranian missiles, resulting in fatalities and injuries among the crew, further elevating market anxieties, according to Channel News Asia, India Times, and Al Jazeera.

Market analysts have highlighted the potential for continued price volatility due to the heightened geopolitical risks in the region. The uncertainty surrounding crude oil supply has increased the likelihood of prices nearing $100 per barrel, fueled by the ongoing hostilities and production concerns in both the US and Iran. Flight activity in the Strait has already seen a significant drop, with tanker transits falling more than 50 percent compared to the previous week, reflecting the gravity of the situation, according to Channel News Asia, India Times, and Al Jazeera.