US-Iran Tensions Send Oil Prices Soaring Amid Supply Disruptions Fears

Oil prices rose on Tuesday as renewed fighting between the US and Iran in the Middle East raised concerns over supply disruptions from the world's key oil-producing region.

Brent crude futures were up 56 cents, or 0.6 per cent, to $91.05 a barrel at 0044 GMT, while US West Texas Intermediate crude was up 83 cents, or 1 per cent, to $86.59.

The recent escalation in tensions between the two nations has led to fears of damage to energy infrastructure around the Gulf and added uncertainty for shipping through the Strait of Hormuz, which carries about a fifth of global oil supplies.

Tim Waterer, chief market analyst at KCM, noted that 'These bring the potential for Iranian retaliation back into the equation. That in turn raises the prospect of damage to energy infrastructure around the Gulf and adds fresh uncertainty for shipping through the Strait of Hormuz.'