US-Iran Tensions Send Oil Prices Soaring to Three-Week High

Oil prices have risen to their highest level in three weeks as tensions between the US and Iran escalate. The Brent crude futures price has climbed 89 cents, or 1%, to $91.76 a barrel, while U.S. West Texas Intermediate crude futures are up $1.05 at $85.55 a barrel.

The increase comes as efforts towards a permanent end to the war in the Middle East have stalled. Iran has stated it will adopt a more aggressive military posture, and the US has ruled out extending its temporary ceasefire pact.

Analysts say that without a deal to reopen the Strait of Hormuz, shipping numbers remain low, threatening to extend the conflict. DBS Bank's head of energy research, Suvro Sarkar, expects oil prices to range between $80 and $100 a barrel in the near term.