Oil prices surge as US-Iran strikes fuel supply fears

How much oil costs now

Brent crude futures rose by 75 cents, or 0.8%, to $95.40 a barrel. West Texas Intermediate crude rose by 44 cents, or 0.5%, to $90.66.

Both contracts rose by more than $4 on Tuesday. This was the biggest price jump for Brent since July 24 and for WTI since July 23.

• Brent: $95.40 per barrel (up 0.8%);

• WTI: $90.66 per barrel (up 0.5%).

The market fears supply disruptions, as tankers carrying millions of barrels of oil pass through the Strait of Hormuz every day. It is one of the world's most important oil transportation routes, and any threat to its security immediately affects prices.

Attacks in the Strait of Hormuz

The United States said it carried out a series of airstrikes on targets in Iran overnight. This prompted a response from Tehran and marked the most serious escalation of the conflict between the two countries in the past several weeks.

The Islamic Revolutionary Guard Corps said the US attacks would further restrict shipping through the Strait of Hormuz. The IRGC also reported a ballistic missile strike on a US military base in Jordan, which allegedly killed a significant number of US service members.

The previous day, US forces struck more than 100 Iranian targets, including air defense facilities, radar systems, and two state-owned tankers.

Washington said the strikes weakened Iran's ability to attack vessels in the Strait of Hormuz for at least a month, although Tehran reported civilian casualties in a strike on a wedding ceremony.

Meanwhile, US President Donald Trump said reaching a deal with Iran was no longer a priority for him, as he prefers the current level of control over the Strait of Hormuz.

He also asked when the Iranian people would rise against the authorities, although he had previously warned that unarmed protesters would not be able to stand up to armed supporters of the regime.