Oil Prices Climb After Fresh Iranian Attacks on UAE

Oil prices climbed on Tuesday after renewed Iranian attacks on the United Arab Emirates raised fresh fears about global supply disruptions.

Brent crude rose by 85 cents, or 0.9%, to $101.06 per barrel, while U.S. West Texas Intermediate gained 55 cents to trade at $94.07.

The latest increase came as tensions in the Middle East continued to unsettle the oil market. Traders are worried that the ongoing U.S.-Israeli war on Iran, now in its third week, could keep supply under pressure for longer if there is no quick end to the crisis.

Although oil prices have not returned to the nearly $120 per barrel levels seen earlier this month, repeated attacks on oil facilities and continued disruption in the Strait of Hormuz are keeping the market on edge. The strait is one of the world’s most important energy routes, handling about 20% of global oil and liquefied natural gas trade.

Iran launched fresh attacks on the UAE on Tuesday, causing at least a partial halt in oil loading operations at Fujairah after a third strike in four days triggered a fire at the export terminal. Fujairah, located just outside the Strait of Hormuz, is a major oil export point that handles volumes equal to about 1% of global demand.

The disruption has added to concerns about shrinking supply. Sources said the effective closure of the Strait of Hormuz has forced the UAE, OPEC’s third-largest producer, to cut its oil output by more than half.

Middle East crude prices have also surged to record levels, with traders pointing to reduced supply available for delivery.

Analysts say the risk remains high, as any fresh attack on oil infrastructure or shipping could push prices even higher and deepen the supply crisis. Meanwhile, efforts to secure shipping routes through the strait are facing resistance, with some U.S. allies rejecting calls to send warships to escort vessels through the troubled area.