Crude futures settle higher on Tuesday over escalating US-Iran tensions, Red Sea blockade threats

Oil prices climbed on Tuesday to the highest level in five weeks as concerns over oil supply in the international market reemerged amid the escalating tensions between the United States and Iran, and a threatened naval blockade of Saudi shipping in the Red Sea by Yemen’s Houthis.

The West Texas Intermediate for August delivery went up 1.68 U.S. dollars, or 2.02 percent, to settle at 84.91 dollars a barrel on the New York Mercantile Exchange, while Brent crude for September delivery added 1.79 dollars, or 2.01 percent, to settle at 91.01 dollars a barrel on the London ICE Futures Exchange.

Market concerns are mounting over further disruptions to energy transportation in the Middle East.

The U.S. military carried out overnight strikes on targets in southern and western Iran, while Iran attacked U.S. facilities in Bahrain, Kuwait and Jordan. At least one oil tanker has been attacked in the Strait of Hormuz.

Yemen’s Houthi group announced on Monday a maritime blockade of Saudi shipping in the Red Sea, further expanding the conflict risk to the Red Sea shipping routes.

At least 20 people were killed, around 80 others injured and more than 100 remain missing after flash floods triggered by heavy rainfall struck Nuristan province in eastern Afghanistan on Monday, a government official said.

Yousuf Hammad, spokesperson for Afghanistan National Disaster Management Authority, said in a post on X that the floods caused heavy casualties in the province.

He said officials from the provincial disaster management department had arrived in the affected areas and launched search-and-rescue operations, including efforts to recover the bodies of victims, rescue the injured and search for those missing.

Preliminary figures on casualties and property losses will be released after investigations and damage assessments are completed, Hammad added.

In a separate statement posted on X, Zabihullah Mujahid, spokesperson for the Afghan government, expressed condolences to the families of those killed and stressed the need to speed up ongoing search-and-rescue operations.

According to local authorities, Parun, the provincial capital of Nuristan, was the worst-hit area, with numerous houses and infrastructure facilities damaged by the floods.