Middle East Tensions Spark Oil Price Surge

Oil prices surged to their highest level in five months as escalating attacks on energy and shipping infrastructure in the Middle East pushed Brent crude above $US109 a barrel. This price jump comes after fresh strikes were exchanged between the US and Iran this week in the Strait of Hormuz, through which one-fifth of the world's oil supply passes.

The price increase is also attributed to forecasts for reduced oil production outside the Middle East. Brent crude jumped more than 6 per cent on Thursday to reach its highest level since May, with prices continuing to trade at about $US107 a barrel on Friday.