Brent rose more than $3 on Tuesday for ​a third day of gains as the widening United States (US), Israeli conflict with Iran and threats to shipping via the ‌Strait of Hormuz heightened fears of supply disruptions from the key Middle East producing region.

Brent crude futures were at $80.89 a barrel, up $3.15, or 4.1%. On Monday, the contract surged to as high as $82.37, its highest since January 2025, though it pared those gains to settle 6.7% ​higher.

US West Texas Intermediate crude climbed $2.55, or 3.6%, to $73.78 a barrel. In the previous session, the contract initially climbed ​to its highest since June 2025 before sliding back to settle up 6.3%.

“With no quick de-escalation ⁠in sight, the Strait of Hormuz effectively closed and Iran showing a willingness to target energy infrastructure in the region, ​upside risks remain and they grow the longer the conflict drags on,” Tony Sycamore, IG Market analyst, said in a note.

The US ​and Israeli air war against Iran widened on Monday with Israel attacking Lebanon and Iran responding with strikes against energy infrastructure in Gulf countries and against tankers in the Strait of Hormuz.

Tankers and container ships are also avoiding the waterway as insurers have cancelled their coverage for vessels, while global ​oil and gas shipping rates have soared.

Concerns about transiting the waterway increased after Iranian media reported on Monday that a senior ​Iranian Revolutionary Guards official said the Strait of Hormuz is closed and warned Iran will fire on any ship trying to pass.

About 20% of the ‌world’s ⁠oil and gas pass through the Strait of Hormuz.

“The market continues to digest the risk of escalation in the Middle East,” said ING analysts in a note on Tuesday.

“While there are concerns about oil flows through the Strait of Hormuz, a greater risk to the market would be Iran targeting additional energy infrastructure in the region. This could lead to more prolonged outages.”

Israeli Prime Minister ​Benjamin Netanyahu said on Monday ​that the US and Israel’s ⁠war against Iran may take “some time” but it will not take years.

Analysts expect oil prices to remain elevated over the coming days while markets focus on the impact of the escalating Middle East ​conflict.

Bernstein on Monday raised its 2026 Brent oil price assumption to $80 a barrel from $65, but ​sees prices reaching $120-$150 ⁠in an extreme case of prolonged conflict.

–Reuters–