Oil prices have surged more than 3 per cent, extending a rally as the escalating US-Israeli war with Iran raised fears of prolonged disruptions to vital Middle East oil and gas supplies.

Brent crude advanced $2.65, or 3.26pc, to $83.99 per barrel by 05:20 (GMT), a fifth session of gains. US West Texas Intermediate crude rose $2.76, or 3.70pc, to $77.42.

Two oil traders said they held bullish expectations for oil prices as a quick resolution to this war seemed unlikely.

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