Middle East Tensions Send Oil Prices Soaring

Oil prices rose on Tuesday as renewed fighting between the U.S. and Iran in the Middle East sparked concerns about supply disruptions from the world's key crude-producing region.

Brent crude futures gained $0.56, or 0.6%, to $91.05 a barrel at 0044 GMT, while U.S. West Texas Intermediate crude was up $0.83, or 1%, to $86.59.

The resumption of direct attacks between the countries on Sunday raised tensions in a conflict that had recently shifted into an economic standoff.

Tim Waterer, chief market analyst at KCM, said 'these bring the potential for Iranian retaliation back into the equation' and raises the prospect of damage to energy infrastructure around the Gulf and adds fresh uncertainty for shipping through the Strait of Hormuz.