Oil surges over 5% as US-Iran tensions raise Hormuz Strait risks

Oil prices surged as renewed military clashes between the United States and Iran heightened risks to shipping in the Strait of Hormuz, bringing concerns over potential energy supply disruptions back to the forefront of market attention.

US crude settled at $90.22 per barrel after rising $4.46, or 5.20%, while Brent futures gained $4.16, or 4.6%, to reach $94.65 per barrel.

The gains came amid escalating threats to navigation through the Strait of Hormuz, renewing worries about ongoing disruptions to global energy supplies.

The oil price rally coincided with a US military announcement of new strikes inside Iran, stating the actions followed attempts to target commercial vessels and American forces in the region.