NEW YORK: Oil prices climbed about 2% on Tuesday after the US shot down an Iranian drone approaching a US aircraft carrier and armed boats approached a US-flagged vessel in the Strait of Hormuz, stoking concerns talks aimed at de-escalating US-Iran tensions could be disrupted. On Monday, both crude benchmarks dropped more than 4% after US President Donald Trump said Iran was "seriously talking" with Washington. But on Tuesday, the US military shot down an Iranian drone that "aggressively" approached the Abraham Lincoln aircraft carrier in the Arabian Sea. Opec members Saudi Arabia, Iran, the United Arab Emirates, Kuwait and Iraq export most of their crude via the strait, mainly to Asia. Any delay to ending the war in Ukraine would likely keep oil prices elevated by leaving sanctions limiting Russia's oil exports in place following Moscow's 2022 invasion.

Source: The Star February 03, 2026 23:08 UTC