Oil markets are reacting to the impact of a U.S. decision to directly enter the Iran-Israel conflict.

Based on the closing price of Brent crude on Friday, a 10% jump would send the global oil benchmark to nearly $85 per barrel.

Strikes stoke fears of escalating regional conflict that could shut down vital strait of Hormuz shipping route

Oil markets are reacting to the impact of a U.S. decision to directly enter the Iran-Israel conflict.

The rise in prices came after President Trump said he had \

Oil markets are entering a new phase of uncertainty after the U.S. entered the war between Iran and Israel, said industry watchers.

Oil prices briefly hit five-month highs as investors anxiously waited to see if Iran would retaliate against US attacks on its nuclear sites.

Brent crude futures were up $1.52 or 1.97 per cent to $78.53 a barrel as of 6am UK time. US West Texas Intermediate crude advanced $1.51 or 2.04 per cent to $75.35.

Oil prices sold off on Monday and Tuesday after Iran held back from targeting regional crude supplies, and Trump pushed Jerusalem and Tehran into a truce.