Oil prices extended gains on Tuesday after Iran threatened retaliation against any new U.S. attacks on its assets, increasing concern about supply disruptions around the Strait of Hormuz, a major route for global crude shipments. Brent crude futures rose 34 cents, or 0.35%, to $97.34 a barrel by 0000 GMT, while U.S. West Texas Intermediate gained $1.15, or 1.26%, to $92.63. The market had already pushed Brent to its highest level since July 24 in the previous session as traders added a risk premium amid escalating regional tensions. The latest exchange of strikes followed U.S. attacks on three Iranian oil tankers, including one near Kharg Island, Iran's main oil export hub, and Iranian Revolutionary Guards strikes on U.S. warships, according to U.S. Central Command. ANZ analyst Daniel Hynes said the escalation increased the likelihood of a prolonged standoff and could constrain Persian Gulf supply through the end of 2026, with a full return to pre-war throughput not expected until late Q1 or early Q2 2027. Goldman Sachs raised its Brent and WTI forecasts by $5 for December 2026 and 2027, while Marex analyst Ed Meir said crude prices would likely remain elevated through year-end as long as the war continues.