Oil Prices Spike on Renewed Middle East Tensions

Oil prices surged to six-week highs on Thursday, driven by renewed tensions in the Middle East. The US strikes on Iran and Israeli threats against Tehran have heightened concerns about disruptions to oil supplies.

Brent crude futures rose $1.66 or 1.7 per cent to $97.29 a barrel, while US West Texas Intermediate crude futures increased by $2.03 or 2.2 per cent to $93.04.

The latest attacks between the US and Iran marked the most significant exchange of fire since July, with the war now in its seventh month. Israeli Defence Minister Israel Katz warned that Israel would 'cripple' Iran's military and civilian infrastructure if Tehran launched attacks against it.

Analysts attributed the jump in oil prices to ongoing tensions in the Middle East and tight oil markets. The Strait of Hormuz saw a decrease in commodity vessel traffic, with six ships transiting the strait on Wednesday compared to 11 the day before.