Oil Prices Soar Over $4 per Barrel Amid Escalating US-Iran Tensions

Oil prices surged on Tuesday, rising over $4 per barrel as tensions between the US and Iran escalated. The price increase pushed Brent futures to a five-week high of $94.65 per barrel, while US West Texas Intermediate (WTI) crude rose to $90.22 per barrel.

The spike in oil prices was triggered by renewed fighting between the US and Iran, with the US launching new air strikes on Iranian targets. This move followed an exchange of fire last weekend and reports of two tankers being hit near the Strait of Hormuz, a global oil supply waterway that Iran has effectively closed to shipping.

Tehran remained defiant, warning that it would prevent oil from being exported from the Gulf, despite a threat by US President Donald Trump to retaliate against Iran 'hard'. Analysts say the fresh hostilities have raised concerns about prolonged disruptions to energy flows through the Strait of Hormuz.