Oil prices surged on Tuesday after Iran fired a barrage of missiles at Israel, inching the Middle East closer to a full-scale regional war traders fear could disrupt energy supplies to the global market.
Brent crude, the international benchmark, rose as much as 5 per cent to $75.40 a barrel in intraday trading on Tuesday. US benchmark West Texas Intermediate was also up 5 per cent to $71.84 a barrel.
The rally came as traders and analysts warned of potential disruption to energy exports if the violence in the Middle East widened, saying energy infrastructure across a region that accounts for about a third of global oil production could be at risk.
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