Oil prices extended gains in Asian trading on Tuesday following heightened geopolitical tension after U.S. President Donald Trump threatened further strikes against Iran. At 20:20 ET (00:20 GMT), Brent crude futures for November delivery rose 0.7% to $91.08 per barrel, while West Texas Intermediate (WTI) futures increased 1% to $86.60 per barrel. In the preceding session, Brent had jumped 3% and WTI 3.6%.
The latest escalation began when U.S. forces struck Iranian military targets on Larak Island, ending a weeks‑long lull in direct attacks. Iran responded by launching missiles at U.S. military facilities in Jordan, prompting Trump to pledge a strong response and raising concerns that the fighting could further threaten shipping through the Strait of Hormuz, a critical export route for Middle‑Eastern crude and petroleum products. The United Kingdom Maritime Trade Operations agency reported that a tanker was hit by three unidentified projectiles while exiting the strait on Monday, underscoring the ongoing risk to commercial shipping.
Supply‑side dynamics were also highlighted. OPEC+ announced an additional production quota increase of roughly 188,000 barrels per day effective from September, completing the planned rollback of earlier voluntary cuts. Concurrently, Russia extended its diesel export ban until 30 September, adding to concerns over refined fuel availability.
On the U.S. side, Trump stated that oil secured under a newly announced deal with Venezuela would be used to replenish the Strategic Petroleum Reserve (SPR), which has fallen to near its lowest level in 44 years. The SPR stood at about 290 million barrels as of 21 August after years of drawdowns, and the timeline for translating the Venezuelan deal into additional crude supplies remains unclear.
Overall, the market is balancing price gains driven by geopolitical risk against supply‑side uncertainties and a depleted U.S. strategic reserve.