Oil prices rise above $95 as US-Iran tensions fuel supply concerns

Brent crude, the global benchmark for oil prices, rose 5.38 per cent to $95.36 per barrel on Tuesday as renewed tensions between the United States and Iran heightened fears of supply disruptions from the Middle East.

US West Texas Intermediate (WTI), the US oil benchmark, also gained 5.95 per cent to $90.86 per barrel.

The closing prices were the highest for Brent since July 24 and for WTI since July 23.

The rally followed renewed military exchanges between the US and Iran, with traders concerned that an escalation could threaten oil supplies from the region, according to Reuters.

The US launched fresh air strikes on Iranian targets on Tuesday, threatening to reignite the six-month-old conflict.

US President Donald Trump had on Monday threatened further strikes against Iran after the two 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, while claiming that new US economic sanctions on Iran were having a significant impact.

Iran had launched missiles overnight at two US air bases in Jordan in response to a US attack on Iran’s Larak Island.

Washington said the attack on Larak Island targeted Iranian launchers that had been firing mines into the Strait of Hormuz, a key route for global oil shipments.