Oil prices continued to rise on Tuesday, with WTI crude futures trading near $76 a barrel, the highest level since January 2025, extending an over 6% gain from the previous session. The escalating conflict with Iran is disrupting fuel shipments and raising concerns about further supply disruptions across Middle East oil and gas markets. Yesterday, Aramco halted operations at Saudi Arabia’s largest oil refinery in Ras Tanura on the Persian Gulf coast following a drone strike. Today, falling debris from an intercepted drone triggered a major fire at the UAE oil-trading hub of Fujairah, although normal operations have since resumed. Meanwhile, Iran has not officially closed the Strait of Hormuz, and Foreign Minister Abbas Araghchi stated the country has no intention of doing so. Nevertheless, shipping activity through the narrow strait has largely halted, and many insurers are planning to withdraw war-risk coverage for vessels entering the Persian Gulf.
