Oil prices have gained more than 3pc after Iran and the US military traded airstrikes and Washington reimposed crude sales sanctions on Tehran, raising fears their fragile truce was unravelling and Middle East supplies could be disrupted again, Reuters reports.
Brent crude futures gained $2.40, or 3.2pc, at $76.56 a barrel at 06:45am GMT. US West Texas Intermediate crude climbed $2.26, or 3.2pc, to $72.70 a barrel.
“While the revocation doesn’t fundamentally change oil market dynamics, it’s important from a sentiment perspective. It heightens the risk of a breakdown in the temporary deal between the U.S. and Iran,” ING commodity strategists said.
“The current conflagration is a reminder to the market of how fragile passage through the Strait still is,” said Saul Kavonic, head of research at MST Marquee.
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