Oil Prices Surge Over $4 per Barrel Amid Renewed US-Iran Fighting

Oil prices surged more than $4 per barrel on Tuesday, settling at a five-week high due to renewed US-Iran fighting. Brent futures rose $4.16, or 4.6%, to settle at $94.65 a barrel, while US West Texas Intermediate (WTI) crude rose $4.46, or 5.2%, to settle at $90.22.

The US launched new air strikes on Iranian targets, quashing hopes that the previous exchange of fire might not lead to a wider renewal of hostilities. Tehran remained defiant, warning it would prevent oil from being exported from the Gulf, despite a threat by US President Donald Trump to hit Iran 'hard' in response.

Saxo Bank analyst Ole Hansen noted that the fresh hostilities raised concerns about prolonged disruptions to energy flows through the Strait of Hormuz.