Oil surges on supply tensions

Oil jumped three per cent on Tuesday to its highest level this month, as further attacks on ships in the Red Sea prompted fears of shipping disruptions and on hopes of interest rate cuts that could boost economic growth and fuel demand. Brent crude futures were up $2.41, or 3.1pc, at $81.48 a barrel by 11:52 a.m. ET (1652 GMT). US West Texas Intermediate crude rose by $2.36, or 3.2pc, to $75.92. The rally, in thin trade with some markets closed for holidays, added to last week’s gains of about 3pc after Houthi attacks on ships worried investors and as the Israel-Hamas conflict showed no sign of easing. “There’s plenty of geopolitical tensions today in terms of the Middle East ... and it has given some angst here to the security of the transit of oil and other goods,” said John Kilduff, partner with Again Capital LLC.