Oil Prices Spike Amid Renewed Tensions Between US and Iran
Oil prices surged on Tuesday after the resumption of fighting between the US and Iran in the Middle East, raising fears of supply disruptions from the world's key crude-producing region. Brent crude futures rose $1.05 (1.2%) to $91.54 a barrel, while U.S. West Texas Intermediate crude climbed $1.27 (1.5%) to $87.03.
The renewed tensions in the region have revived concerns about damage to energy infrastructure and disruptions to shipping through the Strait of Hormuz, which carried around 20% of global oil supplies before the conflict erupted in late February. Iran shut the waterway after the US and Israel attacked the country on February 28.
Despite efforts by mediators to broker a deal to reopen the Strait of Hormuz, none have been successful so far. The UK Maritime Trade Operations agency reported that a tanker was struck by three projectiles while sailing out of the Strait of Hormuz, but no casualties or environmental impacts were reported.