FX.co ★ Oil Extends Gains for 2nd Session

Crude oil climbed to around $88 a barrel on Tuesday, extending Monday’s 2.8% advance, as renewed hostilities between the US and Iran intensified fears of prolonged disruptions to energy flows through the Strait of Hormuz. US forces targeted an island in the strategic waterway, prompting Iran to retaliate with strikes on US-linked assets in the UAE and Jordan—its first direct exchange of fire with Washington in roughly a month.

Two supertankers were reportedly hit by unidentified projectiles while transiting the chokepoint, underscoring the mounting risks for vessels operating in the area. Despite the escalating tensions, crude exports are still moving through Hormuz, although some tankers are said to be switching off their transponders. Major producers including Saudi Arabia, the UAE, Kuwait, and Iraq continue to ship barrels, but the threat of additional attacks remains a key concern. Those fears have been amplified by reports that a tanker was struck by three unidentified projectiles near Oman as it exited the waterway.