Oil prices have surged more than 3 per cent after renewed military strikes between the United States and Iran reignite concerns over energy shipments through the Strait of Hormuz, Reuters reports.

Brent crude futures are up $2.39, or 3.14pc, to $78.40 at 1321 GMT (6:21pm PKT), while US West Texas Intermediate crude is up $2.17, or 3.04pc, to $73.58 a barrel.

Both contracts rose more than 4pc earlier in the session.