Iran's Aggressive Posture Sends Oil Prices Soaring

Oil prices surged for the third consecutive day on Tuesday as hopes of an agreement to end the Middle East war continued to dwindle. Iran's decision to adopt a more aggressive military posture has heightened concerns about global energy supply, causing Brent crude futures to climb by 89 cents (1%) to $91.76 a barrel.

The U.S. ruling out extending its temporary cease-fire pact with Iran further exacerbated the situation, as outward progress on peace talks and resumption of oil tanker traffic through the strategic Strait of Hormuz has stalled.

According to Tim Waterer, chief market analyst at KCM, 'oil has jumped to start the week as U.S.-Iran relations look increasingly shaky.'

DBS Bank's head of energy research, Suvro Sarkar, expects oil prices to range between $80 and $100 a barrel in the near term due to ongoing deal-related uncertainty.