Oil jumps as US-Iran conflict escalates, disrupts shipping

SINGAPORE — Oil prices surged more than 8% to their highest in months on Monday as Iran and Israel stepped up attacks in the Middle East, damaging tankers and disrupting shipments from the key producing region.

Brent crude futures struck a high of USD 82.37 a barrel and was at USD 79.34, up USD 6.47, or 8.88%, by 2305 GMT.

US West Texas Intermediate crude jumped USD 5.36, or 8%, to USD 72.38 a barrel after touching a high of USD 75.33 earlier.

Israel launched a new wave of strikes on Tehran on Sunday and Iran responded with more missile barrages, a day after the killing of Supreme Leader Ali Khamenei pitched the Middle East and the global economy into deepening uncertainty.

At least three tankers were damaged off the Gulf coast and one seafarer was killed as Iranian retaliation for US and Israeli strikes on Iran exposed ships to collateral damage, shipping sources and officials said on Sunday.

(Reporting by Florence Tan; Editing by Sonali Paul)