avoid US sanctions on oil exports.

Oil prices surged more than two per cent after the attack, with Brent surging 2.3 percent to $60.46, while West Texas Intermediate jumped 2.1 percent to $54.69.

The Iranian tanker was hit following months of tensions around the Arabian Peninsula which has seen attacks on tankers, drones and oil facilities

Friday's attack comes after a series of blasts targeting oil tankers belonging to Saudi Arabia and its allies, including on two vessels owned by Japan and Norway in June (pictured)

America has blamed for the attacks, releasing this image which Washington says shows the Islamic Revolutionary Guard Corps removing an unexploded mine from one of the tankers

Prices had already been rising on growing hopes for a breakthrough in the China-US trade talks.

It comes months after aseries of attacks on tankers belonging to Saudi Arabia and its allies which were blamed on Iran.

In May four tankers - two belonging to Saudi Arabia, one to Norway and one to the UAE - were struck by explosions near the UAE in the Gulf of Oman.

An investigation by the UAE, America and France concluded that holes in the vessels were likely caused by explosive charges placed near the waterline.

The US said Iran was responsible for the attacks, though may not have directly carried them out.

That was followed by more attacks in June on two tankers, this time owned by Japan and Norway, in the same stretch of water.

America again accused Iran of being behind the attacks, saying an unexploded limpet mine was found on the side of