Oil prices rose on Tuesday as the energy market remains on high alert for potential supply disruptions caused by the Israel-Iran conflict.
The surge in oil futures contracts that began last week is starting to push up prices at the pump. The average for regular gasoline rose sharply by three cents on Tuesday to $3.17 a barrel.
In late trading, U.S. crude futures rose 2.9% to $73.90 a barrel. That was the biggest gain since late January. Crude oil fell 1.7% on Monday.
Israel's unprecedented attacks on Iran caused oil prices to rise by 13% last week, their biggest one-week increase since October 2022.
The big concern is that Iran will retaliate by targeting energy export infrastructure in the Middle East, which accounts for roughly half of the planet's oil reserves.
Specifically, traders are keeping an eye on the Strait of Hormuz, a critical waterway that connects the oil-rich Persian Gulf to the world's oceans.
The critical role of the Strait of Hormuz was highlighted by a collision of an oil tanker near the waterway on Monday.
(BalkanWeb)
