Oil reacts to expansion of US-Israeli war with Iran with rise

Oil prices rose on Tuesday, March 3, as the expansion of the US-Israeli war with Iran and threats to shipping through the Strait of Hormuz increased fears of supply disruptions from the key oil-producing region of the Middle East.

It was reported by Ekonomichna Pravda with reference to Reuters.

The report says that Brent futures rose by USD 1.70, or 2.2%, to USD 79.44 per barrel.

On Monday, the contract jumped to USD 82.37, the highest level since January 2025, but lost some of the gains and ended the session with an increase of 6.7%.

American West Texas Intermediate added USD 1.17, or 1.6%, to USD 72.40 per barrel.

In the previous session, the contract first rose to its highest level since June 2025, but then retreated and still closed with an increase of 6.3%.

"With no imminent de-escalation in sight, the Strait of Hormuz effectively closed, and Iran showing a willingness to hit energy infrastructure in the region, the risks of further price increases remain - and grow the longer the conflict drags on," IG analyst Tony Sycamore said in a note.

On Monday, the US and Israeli air war against Iran expanded: Israel attacked Lebanon, and Iran responded by striking energy infrastructure in the Persian Gulf and tankers in the Strait of Hormuz.

As the Ukrainian News agency earlier reported, oil prices rose on Tuesday, February 24, approaching seven-month highs, as traders assess the risks to supplies from any military escalation as the next round of nuclear talks between the US and Iran approaches.