Middle East Tensions Spark Oil Price Surge Amid Disruption Fears
Oil prices rose on Tuesday as tensions in the Middle East resurfaced due to renewed fighting between the U.S. and Iran, heightening fears of supply disruptions from the region's key crude-producing area.
Brent crude futures climbed 56 cents or 0.6% to $91.05 a barrel at 0044 GMT, while U.S. West Texas Intermediate crude rose 83 cents or 1% to $86.59.
U.S. President Donald Trump threatened further strikes against Iran following the first exchange of direct attacks between the countries in a month on Sunday, increasing 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. 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.'