Oil surges as U.S. strikes Iranian targets amid Middle East tensions

Crude oil futures rose to near $90.5 a barrel on Tuesday, the highest since late July, after the US military launched new strikes against Iranian targets around the Strait of Hormuz following attacks on two oil tankers in the critical shipping route. US President Donald Trump also threatened a significantly larger response if Tehran retaliates. A senior Iranian military source said Tehran’s response would be “many times greater,” warning that bases across the region could quickly come under Iranian fire. The escalation threatens to prolong the conflict and further disrupt crude exports from the region. Meanwhile, a major Ukrainian drone attack on Russia’s Ust-Luga oil export terminal in the Baltic Sea sparked a fire, as Ukraine continues to target Russian refineries and energy infrastructure.