Brent crude, the global benchmark for oil prices, surged by 5.38 per cent to $95.36 per barrel on Tuesday as renewed military tensions between the United States and Iran raised fresh fears of supply disruptions in the oil-rich Middle East.
The US West Texas Intermediate also climbed 5.95 per cent to $90.86 per barrel, with both benchmarks recording their highest closing prices since July 24 and July 23 respectively, as traders reacted to escalating hostilities between Washington and Tehran.
The rally followed renewed military exchanges between the two countries, heightening concerns that further escalation could threaten crude supplies from the region, Reuters reported.
The United States launched fresh air strikes on Iranian targets on Tuesday, in a move that threatened to reignite the six-month-old conflict.
US President Donald Trump had on Monday threatened further strikes against Iran after both countries exchanged direct attacks for the first time in a month.
Trump also said US air defences had intercepted all Iranian missiles capable of causing damage.
He further claimed that new US economic sanctions imposed on Iran were having a significant impact.
Iran had earlier launched missiles overnight at two US air bases in Jordan in retaliation for a US attack on Iran’s Larak Island.
Washington said the attack on Larak Island targeted Iranian launchers that had allegedly been firing mines into the Strait of Hormuz.
The waterway is a critical route for global oil shipments, making any disruption there a major concern for international energy markets.
The renewed confrontation has therefore placed oil traders on alert, with fears that prolonged military action could disrupt crude supplies and push prices higher.
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