Oil gained for the third straight session on Tuesday driven by escalating supply risks in the Persian Gulf, a sharp drop in Strait of Hormuz traffic, and fresh attacks on critical energy infrastructure in Saudi Arabia.
Brent crude futures gained 1.4% to $98.36 per barrel, while Dubai First Line (Platts) energy futures were up 1.6% to $88.05/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 on Monday as energy installations in the southern region of Saudi Arabia including Saudi Aramco's facilities in Jazan, came under fresh attack.
According to an official source at the Ministry of Energy and regional reports, the strikes caused fires at multiple locations, leading to a temporary halt in certain operations.
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.