Oil prices jumped on Thursday after the United States launched a fresh round of military strikes against targets in Iran. The attacks, which followed a second day of exchanging fire, have put further strain on a fragile two-month ceasefire and heightened fears that the two countries could slide back into open conflict.
The latest jolt to energy markets saw Brent crude surge over 2% to trade above $95 a barrel, while West Texas Intermediate crude surged as much as 3.3 per cent to $92.99 a barrel. These price increases reflect growing concerns that renewed clashes may threaten shipping through the Strait of Hormuz.
Increased Middle East tensions and a rout in chip stocks pulled down major averages on Wednesday, while US stock futures declined as the conflict threatened to prolong instability in global markets. Some oil gains were pared after the U.S. ended the brief campaign of strikes.