Oil prices climbed for a third consecutive session, reaching a five-week high as tensions escalate in the Middle East. The rise follows American air strikes on Iran and reported Iranian retaliation against U.S. allies, which has unsettled markets.
Renewed fighting has revived fears that the conflict could become more prolonged and further disrupt oil flows through the Persian Gulf and the vital Strait of Hormuz. These concerns regarding energy flows are being compounded by supply risks elsewhere.
Brent crude futures rose 0.6 percent, or 56 cents, to US$91.05 a barrel. Since the MoU lapsed, Brent has been trading in the range of $86 to $91, after peaking at $94.40 a barrel on August 21.