Oil Prices Soar on Renewed US-Iran Tensions

Oil prices surged more than US$4 a barrel on Tuesday as traders feared supply disruptions in the Middle East due to renewed fighting between the US and Iran.

The price hike pushed Brent futures up US$4.16, or 4.6%, to settle at US$94.65 a barrel, while US West Texas Intermediate (WTI) crude rose US$4.46, or 5.2%, to settle at US$90.22.

This was the highest close for Brent since July 24 and for WTI since July 23, according to data.

The increase in oil prices came after the US launched new air strikes on Iranian targets, quashing hopes that an exchange of fire last weekend might not presage a wider renewal of hostilities.