Bangkok: Oil prices rose for a third consecutive day on Tuesday amid escalating tensions between the United States, Israel, and Iran, and impacts on cargo shipments through the Strait of Hormuz, raising concerns about supply disruptions from the Middle East, the world's primary oil-producing region.
According to Thai News Agency, Brent crude oil futures were trading at $79.44 per barrel (approximately 2,720 baht), up $1.70 or 2.2 percent at 11:00 AM Thailand time. On Monday, the contract surged to $82.37 (approximately 2,820 baht), its highest level since January 2025, before paring some gains to close 6.7 percent higher. Meanwhile, the price of US West Texas Intermediate (WTI) crude oil surged $1.17, or 1.6 percent, to $72.40 per barrel (approximately 2,480 baht). In the previous trading session, the contract had hit its highest level since June 2025 before declining slightly but still closing up 6.3 percent.
Tony Sycamore, a market analyst from IG, an online brokerage and financial asset trading platform provider, stated in a research report that, given the lack of signs of a swift de-escalation of the conflict, the practically blocked Strait of Hormuz, and Iran's targeting of energy infrastructure in the region, the price risk remains bullish and will increase if the conflict drags on. US and Israeli airstrikes against Iran escalated on Monday, with Israel attacking Lebanon, while Iran retaliated with attacks on energy infrastructure in the Gulf and oil tankers in the Strait of Hormuz.
In addition, oil tankers and container ships are trying to avoid the route as insurance companies have cancelled coverage and global oil and gas shipping costs have soared. Concerns about navigation through this route increased after Iranian media reported on Monday that a senior official of the Iranian Revolutionary Guard Corps stated that the Strait of Hormuz had been closed and warned that Iran would shoot down any ship attempting to pass through. Approximately 20 percent of the world's oil and gas is transported through the Strait of Hormuz.
Analysts at ING, a systemically important financial institution, stated in a report on Tuesday that markets continue to absorb the risks of escalating conflict in the Middle East. Despite concerns about oil flow through the Strait of Hormuz, a greater risk to markets is the possibility of Iran targeting additional energy infrastructure in the region, potentially leading to prolonged supply disruptions. The analysts expect oil prices to remain high in the coming days.