Oil up around 2% as renewed US-Iran strikes stoke supply fears

Efforts by mediators including Qatar and Oman to broker a deal to reopen the Strait of Hormuz, which carried about a fifth of global oil supplies before the war erupted in late February, have so far proven inconclusive.

"Fresh hostilities between the U.S. and Iran raised concerns about prolonged disruptions to energy flows through the Strait of Hormuz," Saxo Bank analyst Ole Hansen said, adding that a lack of follow-through buying suggests the market is betting on supply not being disrupted more than it is already.

Two supertanker carrying Saudi oil were struck by unknown projectiles within minutes of each other on Monday while transiting the Strait of Hormuz.

The number of visible commodity vessels transiting the Strait of Hormuz held at about five per day on Monday, below the 10-day average of around 14, shipping data from Kpler showed. None of the five ships were liquid tankers.

"The hopes that had emerged last week for an upcoming reopening of the Strait of Hormuz to shipping have been dealt a severe blow. The question is also whether, in the event of a renewed escalation, unofficial vessel traffic through the strait can continue unhindered," Commerzbank analysts wrote.