Oil prices rose nearly 2% at settlement on Tuesday, hitting their highest levels in a month, after the United States announced the reimposition of a naval blockade on Iran.

Brent crude futures rose $1.43, or 1.7%, to settle at $84.73 a barrel, while US West Texas Intermediate crude gained $1.20, or 1.5%, to $79.34 a barrel.

The resumption of the US naval blockade on Iran is one of the key drivers that sparked a buying spree in oil markets, amid growing concerns over tightening global supplies.