Oil Prices Soar as US-Iran Tensions Escalate Again

Oil prices surged on Tuesday after renewed fighting between the US and Iran sparked concerns about supply disruptions from the Middle East.

Brent futures rose $4.16, or 4.6%, to settle at $94.65 a barrel, while U.S. West Texas Intermediate (WTI) crude increased by $4.46, or 5.2%, to settle at $90.22.

The sharp increase in oil prices was driven by the US launch of new air strikes on Iranian targets, which quashed hopes for a wider renewal of hostilities.

Tehran remained defiant, warning that it would prevent oil being exported from the Gulf, despite a threat by U.S. President Donald Trump to hit Iran 'hard' in response to the renewed Iranian strikes.