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Oil prices on the rise in wake of renewed Iran-US conflict

Global oil prices jumped around 10% on trading at around US$85 a barrel – the highest level since early June.

Oil prices have continued to rise in the wake of the renewed conflict between Iran and the United States.

In Asian trading on Tuesday, Brent Crude has climbed a further another 1.5% to US$84.50 a barrel.

Earlier in the day, oil prices spiked over 9% on news that US President Donald Trump was planning to impose a 20% levy on the cargo of ships travelling through the Strait of Hormuz.

Oil prices are now back to levels last seen a month ago.

Prices reached nearly US$120 a barrel after hostilities broke out at the beginning of March.

Oil prices spike as US reinstates blockade, ship charges in Strait of Hormuz - Watch on TVNZ+

There has been little reaction yet to the recent surge in oil prices at the pump in New Zealand.

According to fuel monitoring website Gaspy, the average price of a litre of is $2.94.

However, AA spokesperson Terry Collins has said prices are likely to have been as low as they were going to go in New Zealand for now.

rnz.co.nz