Oil Prices Surge as Middle East Tensions Escalate

Oil prices have surged for the third consecutive session, fueled by rising tensions in the Middle East. The US administration's decision not to prolong ceasefire negotiations and Iran's declaration of a more aggressive military posture have intensified worries about disruptions in energy supplies.

Brent crude futures reached $91.22 per barrel, its highest level since late July, while West Texas Intermediate crude rose to $85.31 per barrel.

ING analysts attribute the increase in investor sentiment to the US administration's decision and ongoing security challenges in the Strait of Hormuz. The situation remains fragile, with Iran indicating a shift to a 'fully offensive' military stance and a recent projectile attack on a vessel navigating out of the Strait causing concerns about future oil prices.