Oil futures climbed for a third consecutive day on Tuesday, driven by tumbling Strait of Hormuz traffic and attacks on Saudi Aramco's energy facilities.
Brent crude futures gained 1.2% to $98.10 per barrel, while Dubai First Line (Platts) energy futures were up 2.1% to $88.54/bbl.
"Crude oil climbed as risks of further disruptions to Persian Gulf supply increases," ANZ analysts said.
Analysts note that risks to regional throughput remain elevated following a wave of targeted tanker attacks by both the US and Iran, alongside a steep decline in commercial shipping.
Data from Kpler shows that vessel crossings through the Strait of Hormuz dropped 22% last week to 77 ships, with laden voyages falling to 33.
The supply strain expanded as energy installations in the southern region of Saudi Arabia including Saudi Aramco's facilities in Jazan came under fresh attack. The strikes reportedly caused fires at multiple locations, leading to a temporary halt in certain operations.
On the geopolitical front, Qatar and China discussed diplomatic efforts to ease tensions in the Middle East on Tuesday, including the need to ensure safe and free passage through the crucial Strait of Hormuz waterway, according to a statement from Qatar's Ministry of Foreign Affairs.
Meanwhile, domestic policy adjustments unfolded in Iran, where government spokesperson Fatemeh Mohajerani reported that the price of gasoline sold beyond subsidized limits will double to 10,000 tomans ($0.07) per liter starting September 8.
Existing monthly quotas which grant motorists 60 liters at 1,500 tomans and an additional 50 liters at 3,000 tomans remain unchanged.