Oil prices increased on 7 April amid an approaching US deadline for Iran to reopen the Strait of Hormuz, with US President Donald Trump warning of potential attacks on Iranian infrastructure if the deadline is not complied with.
By 07:00 GMT, Brent crude futures had increased by $1.44, reaching $111.21 per barrel (bbl), a rise of 1.3%, reported Reuters.
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Meanwhile, US West Texas Intermediate (WTI) crude futures climbed $2.32, or 2.1%, to $114.73/bbl.
The closure of the strait, which handles around 20% of global oil trade, has already reduced exports from Gulf countries.
Meanwhile, Iran rejected a ceasefire proposed through Pakistan and insists on a permanent end to hostilities.
The UN Security Council is set to vote on a resolution to safeguard commercial shipping, although it will not authorise force due to opposition from China.
According to Syrian state TV, as cited by the news agency, explosions were heard in Damascus and surrounding areas on Tuesday, attributed to Israeli interception of Iranian missiles.
On 7 April, Saudi Arabia reported intercepting and destroying seven ballistic missiles aimed at its Eastern Region, with debris landing near energy facilities.
The ongoing conflict has tightened global crude supply, pushing spot premiums for US WTI crude to unprecedented levels as refiners in Asia and Europe rush to find alternative supplies due to disrupted Middle Eastern flows.
Meanwhile, Aramco has increased the official sale price of Arab Light crude for May delivery to Asia, establishing a record premium of $19.50/bbl above the Oman/Dubai average.
Furthermore, Russia reported on Monday that Ukrainian drones targeted the Caspian Pipeline Consortium’s terminal on the Black Sea, responsible for 1.5% of global oil supply.
Damage was noted to both the loading infrastructure and storage tanks.
