Oil Prices Soar Amid Escalating US-Iran Conflict in Middle East
Oil prices surged on Tuesday to top $91 a barrel after the US and Iran exchanged fire for the first time in over a month, stoking fears of an escalating conflict in the Middle East.
Brent crude, the international benchmark, rose more than 1 percent to reach $91.44 a barrel as of 05:00 GMT, up from just over $88 a barrel on Monday.
The latest price increase came amid renewed tensions in the region following US strikes on Iran's Larak Island and Iranian attacks on two bases used by US forces in Jordan.
US President Donald Trump pledged to respond to Tehran's strikes, saying 'We're going to hit them hard.'
Saul Kavonic, head of energy research at MST Financial, said the oil market is increasingly realising that a 'no war, no peace' situation may last well into 2027, with only partial volumes flowing through the Strait of Hormuz.