Middle East Tensions Drive Oil Prices Higher Amid Supply Disruption Fears
Oil prices surged by around $1 on Tuesday as renewed fighting between the US and Iran in the Middle East reignited fears of supply disruptions from the world's key crude-producing region.
Brent crude futures rose to $91.54 a barrel, up 1.2%, while U.S. West Texas Intermediate crude climbed to $87.03, up 1.5%.
The uptick in prices comes after US President Donald Trump threatened further strikes against Iran following the first direct attacks between the two countries in over a month on Sunday.
Tim Waterer, chief market analyst at KCM, said 'These bring the potential for Iranian retaliation back into the equation. That in turn raises the prospect of damage to energy infrastructure around the Gulf and adds fresh uncertainty for shipping through the Strait of Hormuz.'