Oil prices climb as Iran threatens shipping through Strait of Hormuz

Oil prices rose further on Tuesday after an Iranian official warned that Tehran would target any vessels attempting to pass through the Strait of Hormuz, escalating concerns over energy supplies as the conflict involving Iran, the United States and Israel intensifies.

In afternoon trading in Asia, Brent crude increased about 3.2 percent to trade above $80 per barrel, while US benchmark crude gained roughly 2.6 percent. The gains followed sharp increases in oil and gas prices a day earlier amid growing fears of supply disruptions.

The Strait of Hormuz, a narrow waterway between Iran and Oman, is one of the world’s most critical energy chokepoints, with around 20 percent of global oil and gas shipments passing through it.

Ebrahim Jabbari, an adviser to the commander-in-chief of Iran’s Islamic Revolutionary Guard Corps, said on state television that ships “should not come to this region” and would face a “serious response” if they did. His remarks came after several vessels were reportedly attacked in recent days, bringing shipping through the strait to a near halt.

The escalating tensions have not only driven up global energy prices but also sharply increased transportation costs. The price of hiring a supertanker to carry oil from the Middle East to China surged to a record high of more than $400,000 per voyage on Monday, nearly double the rate seen last week, according to data from the London Stock Exchange Group.

Rising fuel and transport costs are adding pressure on US President Donald Trump, amid concerns that prolonged instability in the region could push up living expenses.

Trump is scheduled to meet Treasury Secretary Scott Bessent and Energy Secretary Chris Wright to discuss the situation. Secretary of State Marco Rubio said the US government would soon announce measures aimed at addressing the increase in energy prices.