Oil Prices Surge on Fresh Iran Tensions, Supply Disruptions Loom

Oil prices surged on Tuesday as renewed tensions between the US and Iran in the Middle East raised fears of supply disruptions. Brent crude futures rose by 56 cents, or 0.6%, to $91.05 a barrel at 0044 GMT, while US West Texas Intermediate crude increased by 83 cents, or 1%, to $86.59.

The latest fighting between the two countries has reignited concerns about damage to energy infrastructure around the Gulf and shipping disruptions through the Strait of Hormuz. Tim Waterer, chief market analyst at KCM, noted that these risks are being reflected in the firmer tone in crude prices.

Efforts by mediators including Qatar and Oman to broker a deal to reopen the Strait of Hormuz have so far failed to gain traction. Iran shut the waterway after the US and Israel attacked the country on February 28, highlighting the risks that remain to shipping and oil supply.