US-Iran Fighting Triggers 4% Oil Price Spike Amid Supply Fears

Oil prices surged by nearly 4% on Tuesday after fresh US-Iran fighting reignited fears of supply disruptions from the Middle East. The price increase pushed Brent futures to a one-week high, while US West Texas Intermediate crude rose to its highest close since July 23.

The uptick in oil prices was fueled by the resumption of hostilities between the two nations, with the US launching new air strikes on Iranian targets on Tuesday. This move comes after an exchange of fire last weekend and reports of two tankers being hit leaving the Strait, a critical global oil supply waterway that Iran has effectively closed to shipping.

Tehran remained defiant in response, warning that it would prevent oil from being exported from the Gulf despite US President Donald Trump's threat to impose new sanctions. The fresh hostilities raised concerns about prolonged disruptions to energy flows through the Strait of Hormuz, according to Saxo Bank analyst Ole Hansen.