Oil prices have risen by about 2 per cent after the US and Iran stepped up attacks across the Gulf, with shipping threatened by a potential Red Sea closure on top of the restricted traffic through the Strait of Hormuz, Reuters reports.

Brent crude futures are up by $1.53, or 1.82pc, to $85.76 a barrel as of 0951 GMT (2:51pm PKT). US West Texas Intermediate futures have gained $1.69, or 2.14pc, to $80.64.