Oil prices surge due to Middle East conflict escalation

(Patria) - Oil prices have surged due to the escalation of the conflict in the Middle East and increased risks surrounding supply through the Persian Gulf.

Brent crude jumped by seven percent to around $109 a barrel, and US WTI crude rose by as much as 11 percent, trading at around $112 a barrel.

US President Donald Trump announced intensified attacks on Iran and its infrastructure in the coming weeks if Tehran does not accept US ceasefire terms.

Iran, in turn, responded with aggressive rhetoric.

Earlier, oil prices had calmed down following reports that Oman and Iran were coordinating tanker routes through the Strait of Hormuz, but the optimism regarding the prospects for supply normalization was short-lived.

Meanwhile, Great Britain is holding talks with dozens of countries on securing the route.

On the other hand, the Organization of the Petroleum Exporting Countries (OPEC+) is considering a potential increase in production, although it is unlikely that additional supply will affect the markets in the near future.