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EMEA Oil Update: Oil Gains for 2nd Day as US-Iran Conflict Escalates

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(We now track Dubai First Line futures as Adnoc phases out Murban)

Crude oil futures extended gains for a second straight day on Tuesday supported by escalation in the military conflict between the US and Iran, intensifying worries over supply.

Brent crude futures gained 2.4% to $92.64 per barrel, while ICE Dubai First Line (Platts) energy futures were trading 2.8% higher at $87.74/bbl, their highest since early June.

"Crude rose for a second session as fresh hostilities between the US and Iran raised concerns about prolonged disruptions to energy flows through the Strait of Hormuz," Saxo Bank analysts said.

"Brent traded back above $91 after US forces struck an island in the Strait, prompting Iran to retaliate with attacks on the UAE and Jordan," they said.

The renewed friction follows recent direct hostilities, the first in a month, after US forces struck an Iranian island and threatened Kharg Island, prompting retaliatory Iranian attacks on the UAE and Jordan.

President Donald Trump subsequently warned of further potential strikes.

"Crude still transits the Strait of Hormuz despite a supertanker fire caused by naval mines, and Russian strikes on refineries appear to be tightening global refining capacity and lifting fuel margins," Saxo Bank analysts added.

Meanwhile, Abu Dhabi National Oil Co. has reportedly restored its major Ruwais refinery to full operating capacity of 922,000 barrels a day following earlier war-related damages, successfully boosting exports of refined products like diesel and jet fuel.

On the supply side, the US Department of Energy's Strategic Petroleum Reserve data released Monday showed that SPR inventory levels as of Aug. 28 stood at 286.6 million barrels, down 3.1 mmbbls from 289.7 mmbbls a week earlier.

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