Oil prices surpassed $90 per barrel during Tuesday's trading session after renewed exchange of attacks between the US and Iran.

By 02:18 GMT, Brent crude futures rose $1.52, or 1.7 percent, to $90.81 per barrel.

US West Texas Intermediate crude, for the nearest delivery month which expires on Tuesday, increased $1.85, or 2.2 percent, to $84.30 per barrel.

The more actively traded September delivery contract rose $1.48, or 1.8 percent, to $83.96.

Giovanni Staunovo, an analyst at UBS, told Reuters: 'Reduced exports through the Strait of Hormuz and concerns about possible disruption to future oil supplies are supporting oil prices slightly.'

US forces bombed targets in southern Iran overnight after President Donald Trump said Tehran would pay a heavy price for the killing of American soldiers.

The British Maritime Trade Operations reported on Tuesday that a tanker was targeted by an unknown projectile in the Strait of Hormuz, forcing its crew to abandon it and take to a lifeboat.

Ship traffic through the strait decreased further after the latest escalation of US and Iranian attacks.

A research report from SEB said: 'Optimists may see the latest US attacks as a last-ditch attempt to strengthen the negotiating position before reaching a settlement and reopening the Strait of Hormuz.'

The report added: 'The risk, however, lies in a prolonged stalemate, with continued instability in energy flows, rising oil prices, and repeated attacks.'

Remarks by an Iranian official to Reuters limited the price gains, as he said Tehran received a proposal from mediators for a ten-day ceasefire, in an attempt to salvage a temporary agreement signed on June 17 aimed at paving the way for a permanent deal to end the war that erupted on February 28 with US-Israeli attacks on Iran.