Brent crude futures rose for a second straight session on Tuesday, climbing 1.4 per cent to $106.77 a barrel by 0326 GMT and nearing $107 in Mumbai trade, as US-Iran tensions kept supply fears alive. US West Texas Intermediate gained 1.5 per cent to $93.94.

Lingering concern over Middle East supply disruption from the US-Iran conflict outweighed signs of recovering Gulf exports, though Saudi Arabia has resumed shipments via its repaired East-West pipeline. Data provider Kpler estimated September exports from major regional producers at 12.8 million barrels a day, the highest since February.

Analysts say workarounds such as ship-to-ship transfers keep a risk premium in prices. Higher oil weighed on Indian markets and pushed the rupee past 96 to the dollar, touching a two-month low of 96.1450. Traders remain wary of shipping risks through the Strait of Hormuz, and analysts say any escalation could push prices higher still. For India, the world’s third-largest crude importer, sustained high prices threaten inflation and the import bill.