Oil Prices Skyrocket as US-Iran Tensions Escalate
Oil prices surged on Tuesday, reaching five-week highs after renewed fighting between the US and Iran heightened concerns over supply disruptions in the Middle East.
The Brent crude futures rose $4.16, or 4.6%, to settle at $94.65 a barrel, their highest close since July 24, while US West Texas Intermediate (WTI) gained $4.46, or 5.2%, to $90.22, its strongest settlement since July 23.
The escalation of hostilities followed a new round of US air strikes on Iranian targets and reports that two tankers had been hit while leaving the Strait of Hormuz.
Iran has effectively closed the strategic waterway to shipping, warning it would prevent oil exports from leaving the Gulf, while US President Donald Trump threatened a forceful response to renewed Iranian attacks.