Oil Prices Surge on Renewed Middle East Tensions

Oil prices rose on Tuesday as renewed tensions in the Middle East sparked fears of supply disruptions. The resumption of fighting between the US and Iran has revived concerns about damage to energy infrastructure in the region, particularly around the Strait of Hormuz.

The Brent crude futures price increased by $0.56, or 0.6%, to $91.05 per barrel at 0044 GMT. US West Texas Intermediate crude was up 83 cents, or 1%, to $86.59. On Monday, US President Donald Trump threatened further strikes against Iran following a direct attack exchange on Sunday.

Tim Waterer, chief market analyst at KCM, said the potential for Iranian retaliation raises the prospect of damage to energy infrastructure and adds fresh uncertainty for shipping through the Strait of Hormuz.