Crude oil and natural gas futures climbed sharply for a second straight day on Tuesday after Iran declared the Strait of Hormuz closed and warned it would attack any vessel attempting to transit the vital waterway.

The move has heightened fears of supply disruptions from a chokepoint that handles about one‑fifth of the world’s oil and gas output.

U.S. crude futures were up roughly 7 per cent, trading near $76 a barrel, while the global benchmark Brent contract jumped more than 7 per cent to around $83 a barrel, reflecting growing market concern over tightening supplies.

Oil prices have surged more than 14 per cent this week as tanker traffic through the Strait of Hormuz comes to a standstill.

The waterway handles roughly 20 per cent of global oil demand, with exports mainly destined for China, India, Japan, and South Korea.

European natural gas prices have skyrocketed over 70 per cent this week after Qatar halted liquefied natural gas production following Iranian drone attacks.

The UK futures contract jumped about 30 per cent Tuesday, while the Dutch contract rose roughly 27 per cent. Around 20 per cent of global LNG exports, predominantly from Qatar, transit the Strait, intensifying supply concerns.

The US and Israel carried out strikes on Iran Saturday morning, following what the Israeli military described as months of “close and joint planning.”

Israel stated that the attacks targeted Iran’s supreme leader, president, and top military officials.