Brent crude futures were at $79.44 a barrel, up $1.70, or 2.2%, by 0400 GMT.

On Monday, the contract surged to as high as $82.37, its highest since January 2025, though it pared those gains to settle 6.7% higher.

US West Texas ​Intermediate crude jumped $1.17, or 1.6%, to $72.40 a barrel.

In the previous session, the contract initially climbed to its highest ​since June 2025 before sliding back to still settle up 6.3%.

“With no quick de-escalation in ⁠sight, the Strait of Hormuz effectively closed and Iran showing a willingness to target energy infrastructure in the region, upside ​risks remain and they grow the longer the conflict drags on,” Tony Sycamore, IG market analyst, said in a note.

The ​US and Israeli air war against Iran widened with Israel attacking Lebanon and Iran responding with strikes against energy infrastructure in Gulf countries and against tankers in the Strait of Hormuz.

Tankers and container ships are also avoiding the waterway as insurers have cancelled their coverage for vessels, while global ​oil and gas shipping rates have soared.

Concerns about transiting the waterway increased after Iranian media reported on Monday that a senior Iranian Revolutionary ​Guards official said the Strait of Hormuz is closed and warned Iran will fire on any ship trying to pass.

About 20% of the world’s oil and gas ‌pass ⁠through the Strait of Hormuz.

“The market continues to digest the risk of escalation in the Middle East,” said ING analysts in a Tuesday note.

“While there are concerns about oil flows through the Strait of Hormuz, a greater risk to the market would be Iran targeting additional energy infrastructure in the region. This could lead to more prolonged outages.”

Analysts expect oil prices to remain elevated over the coming days while markets focus on the impact of escalating Middle ​East conflict.

Earlier, Iranian media reported that the Strait of Hormuz is closed and Iran will fire on any ship ​trying to pass.

The Strait of Hormuz lies between Oman and Iran. It links the Gulf north of it with the Gulf of Oman to the south and the Arabian Sea beyond. 

It is 33 km wide at its narrowest point, with the shipping lane just 3 km wide in either direction. 

OPEC members Saudi Arabia, Iran, the United Arab Emirates, Kuwait and Iraq export most of their crude via the strait, mainly to Asia. 

Qatar, among the world’s biggest liquefied natural gas exporters, sends almost all of its LNG through the strait. Qatar halted its LNG production on Monday.