Oil prices inched higher after the US and Iran stepped up attacks across the Gulf, with their broken truce limiting oil flows out of the Strait of Hormuz and with Tehran asking the Houthi movement to stand ready to shut the Red Sea export route, Reuters reports.

Brent crude futures rose $1.05, or about 1.25 per cent, to $85.28 a barrel by 0118 GMT, and US West Texas Intermediate futures rose $1.03, or 1.3pc, to $79.98 a barrel, erasing losses from the previous session.

Both benchmark contracts have climbed nearly 12pc this week, with Brent on track for a third consecutive weekly gain and WTI for a second weekly gain.