Middle East Tensions Spark Oil Price Surge
Oil prices rose on Tuesday as renewed fighting between the US and Iran in the Middle East increased concerns about supply disruptions from the world's key crude-producing region.
Brent crude futures gained 56 cents, or 0.6 per cent, to $91.05 a barrel at 0044 GMT, while US West Texas Intermediate crude rose 83 cents, or 1 per cent, to $86.59.
The increase came after US President Donald Trump threatened further strikes against Iran on Monday following the first exchange of direct attacks between the countries in a month.
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.'
The number of visible commodity vessels transiting the Strait of Hormuz dropped to five per day over the weekend, according to shipping data from Kpler.
A tanker reported being struck by three projectiles while sailing out of the Strait of Hormuz on Tuesday, but no casualties or environmental impact were reported, according to the United Kingdom Maritime Trade Operations agency (UKMTO).