Oil prices rose more than 1% Tuesday as renewed fighting between the U.S. and Iran heightened concerns over energy flow disruptions through the Strait of Hormuz. The front-month Brent crude contract rose 1.4% to $91.72 a barrel, while West Texas Intermediate futures gained 1.6% to $87.10. The price increase follows U.S. strikes on Iranian rocket launchers near the Strait and subsequent Iranian retaliation, marking the first direct exchange in about a month.

Analysts warn that persistent geopolitical tensions and tanker attacks are likely to keep a risk premium embedded in crude prices. Supply risks are further compounded by Russia extending its diesel-export ban through September and a U.S.-backed plan to expand Venezuelan oil production. Rystad Energy notes that major new Orinoco production will only become meaningful from around 2035, with near-term recovery led by redevelopment of existing fields.

About a fifth of the world’s oil supplies flowed through Hormuz before the conflict began. Market attention remains focused on whether the conflict escalates and whether shippers grow hesitant to navigate the critical waterway.