Iran-US Tensions Spark Oil Price Surge Amid Supply Disruptions

Oil prices surged over 2% on Tuesday as tensions between the US and Iran escalated, stoking fears of supply disruptions from the oil-producing region.

Brent crude futures rose $2.17 to $92.66 a barrel by 1302 GMT, while US West Texas Intermediate crude climbed $2.48 to $88.24 per barrel.

The increase erased most of the losses incurred over the past week, as the conflict between the two nations intensified with a new exchange of direct attacks.

US President Donald Trump threatened further strikes against Iran on Monday, prompting Iranian President Masoud Pezeshkian to vow that his country would immediately reciprocate if the US returned to its commitments under the interim peace deal signed in June.