• Oil prices rose by 2% to a one-month high, nearing $85 per barrel.
• Renewed US military actions against Iran have heightened fears of disrupted oil supplies.
• US President Trump announced a blockade of Iranian ports, heightening geopolitical risks.
• Two UAE tankers were attacked by Iranian missiles in the Strait of Hormuz.
• The conflict has caused a significant drop in shipping traffic through the region.

Oil prices surged 2% on Tuesday, reaching their highest level in a month as tensions between the United States and Iran escalated. Brent crude futures climbed to $84.98 per barrel, while the US West Texas Intermediate (WTI) rose to $79.79 a barrel. This follows a remarkable 9.6% gain the previous session, marking the largest daily increase since May 2020, as uncertainty surrounding energy flows intensified, according to Channel News Asia and India Times.

The recent escalation began when US President Donald Trump announced a renewed naval blockade on Iranian shipping, claiming that the US will seek reimbursement for its protection efforts. He stated, “We’re hitting them very hard. And it’ll continue," indicating a significant shift in US policy regarding navigation through the Strait of Hormuz. These developments have raised alarm among traders, leading to a dramatic rise in oil prices as fears of supply chain disruptions loom large, according to Al Jazeera and India Times.

Following the attacks, the UAE Ministry of Defence reported that two tankers were struck by Iranian missiles, which resulted in the death of one crew member and injuries to several others. This incident has underscored the rising stakes in the region, as Iranian forces have also launched retaliatory attacks aimed at US military assets in neighboring countries such as Bahrain, further complicating the security situation in the Strait of Hormuz, as detailed by Channel News Asia and Al Jazeera.

The growing conflict has also had a notable impact on maritime activity, with reports indicating that traffic through the Strait of Hormuz has decreased by more than 50% compared to the previous week. This slowdown poses additional risks to oil supplies and prices, fueling further volatility in global energy markets. Analysts warn that sustained military escalation could lead to another surge in oil prices, potentially even reaching levels close to $100 per barrel amidst fears of actual physical shortages, according to Channel News Asia and Al Jazeera.