Oil prices rise as European gas climbs to highest level since 2023 after renewed attacks on Iran

Oil prices surged on Tuesday, while European gas prices hit a three-year high, as renewed US strikes against Iran and Tehran’s threats of retaliation raised fresh concerns over the Strait of Hormuz.

The price of West Texas Intermediate (WTI) crude for October delivery rose 5.20 per cent to $90.22 a barrel, breaking above $90 for the first time since late July.

The price of North Sea Brent crude for November delivery also rose 4.60 per cent to $94.65 a barrel.

The United States carried out strikes on Iran for a second consecutive day, while Tehran announced a “decisive” retaliatory operation, despite US President Donald Trump threatening to launch a “much stronger and more powerful” attack on Iran.

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Carsten Fritsch, an analyst at Commerzbank, said: “Last week’s hopes of reopening the Strait of Hormuz to shipping have been dealt a severe blow.” He added that the question was whether unofficial maritime traffic through the strait could continue unhindered despite the renewed escalation.

The US strikes came shortly after two oil tankers were hit by “projectiles of unknown origin” while leaving the Strait of Hormuz, according to Greek maritime risk management firm Marisks. 

Edward Rosenberg, an analyst and head of ETFs at Strategy Shares, said: “The longer the war with Iran goes on, oil prices will continue to stay elevated and volatile,” adding, “sanctions, stalled negotiations, and mixed signals on whether Iran wants the war to end are swinging prices day to day, not just holding them high.” 

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