Oil Prices Rise Amid Fears of Escalating Iran-Israel Conflict

Oil prices increased on Tuesday due to growing concerns that the ongoing conflict between Iran and Israel may worsen, potentially disrupting oil supplies from the key Middle Eastern region.

Brent crude futures climbed by 34 cents (0.5%) to reach $73.57 per barrel by 03:40 GMT. U.S. West Texas Intermediate (WTI) crude rose 29 cents (0.4%) to $72.06 per barrel. Earlier in the trading session, both benchmarks had gained over 2%.

On Monday, oil prices had dropped by more than 1% as reports suggested that Iran might be seeking to de-escalate the situation. However, tensions quickly reignited after U.S. President Donald Trump urged people to evacuate Tehran through a social media post.

The conflict entered its fifth day on Tuesday, with Iranian media reporting explosions and intense air defence activity in Tehran. Meanwhile, air raid sirens were heard in Tel Aviv as Iranian missiles targeted the city.

Priyanka Sachdeva, a senior market analyst at Phillip Nova, said that concerns over the Iran-Israel conflict are still heavily influencing investor sentiment, keeping the risk of war in focus.

She also noted that additional market volatility is expected ahead of the U.S. Federal Reserve’s policy meeting starting Tuesday, which could further impact oil prices.