Oil Prices Surge as US-Iran Conflict Escalates

Oil prices rose on Tuesday as renewed fighting between the US and Iran in the Middle East sparked concerns about supply disruptions from the region. Brent crude futures gained 56 cents, or 0.6%, to $91.05 a barrel at 0044 GMT, while US West Texas Intermediate crude was up 83 cents, or 1%, to $86.59.

The conflict has raised fears of damage to energy infrastructure around the Gulf and uncertainty for shipping through the Strait of Hormuz, which carries about a fifth of global oil supplies. Iran shut the waterway in late February after the US and Israel attacked the country.

Tim Waterer, chief market analyst at KCM, said 'these bring the potential for Iranian retaliation back into the equation'.