Oil Prices Surge as Middle East Tensions Intensify Energy Supply Concerns

Oil prices surged on Wednesday as tensions between the US and Iran intensified, sparking concerns over energy supplies and trade.

The Brent crude futures gained $1.03, or 1.1%, to $95.68 a barrel, while US West Texas Intermediate crude rose 61 cents, or 0.7%, to $90.83.

The escalation of the conflict has shifted the focus from the possibility of a wider conflict to the potential economic consequences of prolonged disruption, particularly around the Strait of Hormuz.

A critical route for global energy trade, the strait saw Iran effectively restricting commercial shipping before the conflict, while fresh attacks on tankers added to concerns about the safety and cost of transporting crude.