Oil prices jump over 2% on geopolitical fears

Oil prices rose more than 2% on Tuesday after reports of attacks on vessels near the Strait of Hormuz revived fears of disruptions to shipping through the critical energy transit route.

Brent crude futures gained $1.86, or 2.58%, to $73.85 a barrel, while US WTI crude rose $1.73, also 2.52%, to $70.28 a barrel at 1534 GMT.

"The overriding theme this morning is a ship being shot at in the Strait of Hormuz," Saxo Bank analyst Ole Hansen said. "That's bringing some geopolitical risk premium back into the price. It's not a lot compared with what we've seen in the past, but it's the main driver behind the bid in the market."