Oil prices surge after reported tanker attack near UAE amid Middle East tensions

Global oil prices climbed sharply Tuesday following reports of an attack on a Kuwaiti-flagged oil tanker near the United Arab Emirates, raising concerns about supply disruptions in a key energy shipping route.

According to the Kuwait Petroleum Corporation, the tanker was struck off the coast of Dubai. The company said there were no reported casualties or oil spills resulting from the incident. The circumstances of the attack and responsibility have not been independently verified.

Benchmark Brent crude rose about five per cent to approximately $118.50 per barrel, while U.S. crude prices reached $103.57 per barrel. Prices briefly approached the $120 mark during trading, reflecting heightened market uncertainty tied to regional tensions.

Analysts say the incident underscores risks around the Strait of Hormuz, a critical chokepoint for global oil shipments. Any disruption in the area can have immediate impacts on international energy supply and pricing.

Rising oil costs are also affecting consumers. In the United States, average gasoline prices have climbed above $4 per gallon for the first time in about four years, according to industry tracking data.