Oil Prices Surge as Geopolitical Tensions Escalate

Oil prices surged on Tuesday as West Texas Intermediate (WTI) traded above $83 a barrel, up 1.45%, extending gains for a fourth consecutive session.

Brent reached $88.89, up 1.33%, after clearing $86 on Monday, largely due to geopolitical tensions surrounding the Strait of Hormuz.

President Trump introduced new demands on Iran, including compensation for people killed in conflicts, further widening the gap between negotiating positions.

The US Strategic Petroleum Reserve has fallen below 300 million barrels, its lowest level since 1983, reducing the buffer that would absorb a supply shock of this type.