Oil rises to four-week high after U.S. and Iran strikes in Strait of Hormuz.

Oil prices continued to rise in early Asian trading on Tuesday, reaching their highest level in four weeks. The gains followed reports that the U.S. military had carried out strikes on targets in Iran for a third consecutive day and reinstated a naval blockade, while Iran's Revolutionary Guard said it had attacked tankers in the Strait of Hormuz.

As of 06:30 a. Bulgarian time, Brent crude futures had risen by $1.50, or 1.8%, to $84.80 per barrel. West Texas Intermediate (WTI) crude futures climbed $1.70, or 2.2%, to $79.84 per barrel.

Both benchmarks had earlier gained more than $2 per barrel before easing slightly. Brent surged 9.6% in the previous session, marking its biggest one-day increase since May 2020. Oil prices are now at their highest level since Washington and Tehran signed a memorandum of understanding on June 17 aimed at ending the conflict.

The U.S. military carried out a third consecutive night of strikes against Iran after President Donald Trump announced the reinstatement of the blockade of Iranian ports and proposed a 20% fee for security operations in the Strait of Hormuz.

Meanwhile, the United Arab Emirates' Ministry of Defence said three tankers, two of them flying the UAE flag, were struck by Iranian missiles in Omani territorial waters within the Strait of Hormuz. One crew member was killed and eight others were injured.

The latest escalation, including the renewed U.S. blockade and Iran's response, has clearly introduced fresh risks into the market, said Tim Waterer, Chief Market Analyst at KCM Trade.