Oil Prices Soar Above $90 as Middle East Tensions Escalate

Oil prices have surged above $90 per barrel as tensions in the Middle East escalate. The global benchmark, Brent crude oil from the North Sea, reached $90.02 per barrel, up over 2.5% from Monday's price. Meanwhile, West Texas Intermediate, the main US contract, rose 2.7% to $84.32 per barrel.

The increase comes as Iran continues to defy US demands and refuses to accept key conditions for a new agreement on ship traffic through the Strait of Hormuz. This vital waterway accounts for around 20% of global oil flow. Trump has responded angrily, accusing Iran of demanding compensation for damages caused during the recent conflict.

The Iranian rial has hit 'junk' levels, standing at just 53 cents per million rials according to a chart shared by Trump. This economic stranglehold adds to the pressure on Tehran, with analysts predicting that if the Strait were to reopen, crude oil supply would surge and prices plummet.