US-Iran Tensions Fuel Oil Price Surge

Oil prices surged on Tuesday as tensions between the US and Iran continued to escalate, stoking concerns over potential disruptions to global energy supplies.

The price of benchmark futures rose by 0.4% to $91.22 a barrel, while US futures climbed by 1.0% to $85.37 a barrel by 09:22 ET (13:22 GMT).

Analysts at ING attributed the increase in sentiment to US President Donald Trump's decision not to extend the US-Iran ceasefire agreement and ongoing security concerns in the Strait of Hormuz.

The Strait, a vital chokepoint for global shipping, hosts around 20% of global oil flows. However, commercial traffic through the area remains at a fraction of pre-war levels due to fears of Iranian attacks.