US-Iran Hostilities Spark Oil Price Surge Amid Disruption Fears

Oil prices surged on Tuesday as US-Iran hostilities escalated once again. The Brent futures rose by $3.44, or 3.8%, to reach a one-week high of $93.93 per barrel at 13:10 EDT. Meanwhile, the West Texas Intermediate crude increased by $3.72, or 4.3%, to hit its highest close since July 23 at $89.48.

The tensions between the US and Iran have been rising over the past few days, with a series of air strikes launched against Iranian targets on Tuesday. The US Central Command confirmed that 'US forces began striking Islamic Revolutionary Guard Corps targets in Iran' on Tuesday afternoon.

Analysts warn that the renewed hostilities may disrupt energy flows through the Strait of Hormuz, which has been a major concern for oil markets. Saxo Bank analyst Ole Hansen noted that 'the fresh hostilities raised concerns about prolonged disruptions to energy flows through the Strait of Hormuz.'