London: Oil prices surged more than 1% on Tuesday after Ukrainian drone strikes targeted Russian export ports and refineries, raising concerns about potential supply disruptions. This development has caught the attention of investors who are also anticipating the upcoming US Federal Reserve policy meeting.

According to Qatar News Agency, Brent crude futures increased by $1.03, or 1.5%, settling at $68.47 a barrel, while US West Texas Intermediate (WTI) crude rose $1.22, or 1.9%, reaching $64.52 a barrel. These price movements reflect market anxieties over the possible impact on global oil supply chains.

In response to the attacks, Russia's oil pipeline operator, Transneft, has issued warnings to producers about the potential need to reduce output due to damage to critical infrastructure. This development adds a layer of complexity to an already tense geopolitical situation affecting global oil markets.

Meanwhile, market participants are closely monitoring the US Federal Reserve's meeting scheduled for September 16-17. Policymakers are expected to consider cutting interest rates to stimulate the economy and improve fuel demand. Despite this anticipation, analysts have noted that ongoing uncertainty about the US economic growth outlook continues to influence market sentiment.