Oil Prices Spike as Middle East Tensions Rise

Oil prices have surged by around $1 on Tuesday as fighting between the US and Iran in the Middle East has renewed concerns about supply disruptions from key crude-producing regions.

Brent crude futures rose to $91.54 a barrel, up 1.2% or $1.05, while US West Texas Intermediate crude increased to $87.03, up 1.5% or $1.27.

The recent resumption of fighting has revived fears of damage to energy infrastructure in the Gulf and uncertainty for shipping through the Strait of Hormuz, which carries about a fifth of global oil supplies.

Tim Waterer, chief market analyst at KCM, said 'these bring the potential for Iranian retaliation back into the equation' and raise concerns about shipping disruptions.