Oil prices have risen this morning over fears of renewed military escalation in the Middle East after Iran released footage of commandos boarding a cargo ship in the Strait of Hormuz and on reports Tehran’s air defences had engaged “hostile targets”.

Brent crude futures rose $1.23, or 1.17 per cent, to $106.3 a barrel by 01:07 GMT (6:07am PKT), while West Texas Intermediate futures were up $1.07, or 1.12pc, at $96.92.