Oil prices jump over fresh US-Iran clashes

Oil prices have jumped by more than four per cent after fresh military clashes between the United States and Iran.

US forces hit dozens of targets in Iran over the weekend, while Tehran says it struck American bases in Kuwait and Bahrain. Analysts warn the fighting could disrupt oil shipments through the Strait of Hormuz, one of the world's most important trade routes.

US President Donald Trump insists the waterway remains open to commercial traffic. But shipping data shows just six vessels sailed through the strait on Sunday—the lowest number in five weeks.

The violence threatens to destroy a temporary ceasefire signed in June. Before the conflict broke out in February this year, a fifth of the world's oil and natural gas passed through the narrow shipping lane.