(RTTNews) – Oil prices continued to rise on Tuesday as the escalating conflict between the United States and Israel with Iran raised concerns over potential supply disruptions from the vital Middle East oil-producing region.
Brent crude futures were up 5.4 percent at $81.97 a barrel, while WTI crude futures jumped 5.4 percent at $75.07.
Following coordinated US and Israeli air strikes on Iran over the weekend, Iran’s Revolutionary Guard said it had closed the Strait of Hormuz – a vital waterway for the movement of oil.
Senior officials reportedly warned that any ship attempting to pass through the strategic waterway “will be set on fire.”
About 20 percent of the world’s oil and gas passes through this narrow waterway.
Nearly 100 container ships are stuck in a massive backup near the Strait of Hormuz, a major shipping executive says, following US and Israeli action against Iran.
With marine insurers suspending coverage for voyages through the strait and major shipping companies halting bookings to the Middle East, experts have warned that a prolonged disruption could send oil prices soaring, potentially increasing energy costs globally.
European natural-gas prices rose more than 20 percent today after production was halted at the world’s largest liquefied-natural-gas export facility in Qatar.
Supply concerns were also worsened by attacks on several oil refineries, including Saudi Aramco’s oil facility in Ras Tanura.
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