Oil prices extended gains on Tuesday as the risk of a prolonged conflict in the Middle East increased after Iran threatened to retaliate against any further US attacks on its assets, heightening concerns over potential supply disruptions.
By 3:15 pm AEST (5:15 am GMT), Brent crude futures were up 71 cents, or 0.7%, at $97.71 a barrel, while U.S. West Texas Intermediate (WTI) crude gained $1.59, or 1.7%, to $93.07 a barrel.
Geopolitical tensions in the Middle East intensified as Iran threatened the U.S. with "economic warfare" and said it had fired an advanced missile at U.S. warships.
On Saturday, U.S. forces struck three Iranian oil tankers, including one near Kharg Island, Iran’s main oil export hub, according to US Central Command (CENTCOM).
Separately, according to reporting from the Financial Times, Saudi Aramco’s oil facilities in Jizan were hit on Monday, adding to concerns that the conflict could threaten energy infrastructure and disrupt regional supplies.
