Oil Prices Surge as Middle East Tensions Escalate
Oil prices rose on Tuesday as renewed fighting between the US and Iran in the Middle East raised concerns about supply disruptions from key crude-producing regions. Brent crude futures increased by 56 cents, or 0.6%, to $91.05 a barrel at 12:44 am GMT, while US West Texas Intermediate (WTI) crude rose by 83 cents, or 1%, to $86.59.
US President Donald Trump's threat of further strikes against Iran on Monday added uncertainty for shipping through the Strait of Hormuz, a crucial waterway that carried about a fifth of global oil supplies before the conflict erupted in late February. The number of visible commodity vessels transiting the strait dropped to five per day over the weekend, according to shipping data from Kpler.
Despite efforts by mediators, including Qatar and Oman, to broker a deal to reopen the Strait of Hormuz, no progress has been made so far. Iran shut the waterway after the US and Israel attacked the country on February 28. The UK Maritime Trade Operations agency (UKMTO) reported that a tanker was struck by three projectiles while sailing out of the strait on Tuesday, but there were no casualties or environmental impact.