NEW YORK: Global oil prices jumped nearly 4% on Tuesday, reaching their highest levels in about a week, as renewed fighting between the United States and Iran intensified concerns over potential disruptions to Middle Eastern oil supplies.
Brent crude futures rose $3.44, or 3.8%, to $93.93 a barrel, while US West Texas Intermediate (WTI) crude gained $3.72, or 4.3%, to $89.48.
The gains put Brent on track for its highest close since August 20 and WTI for its strongest close since July 23.
Oil prices had already begun rising following the latest exchange of attacks between Washington and Tehran, along with reports that two tankers were hit while leaving the Strait of Hormuz, a critical global oil transit route that Iran has effectively closed to shipping.
The United States launched fresh air strikes against Iranian targets on Tuesday, ending hopes that last weekend’s exchange of attacks might not lead to a broader escalation of the conflict.
Iran, meanwhile, remained defiant and warned that it would prevent oil exports from the Gulf. US President Donald Trump threatened further strikes against Iran, while US Treasury Secretary Scott Bessent warned that Washington was preparing additional sanctions.
The conflict is also disrupting refinery operations, particularly in the Middle East, while Ukrainian attacks have affected refining capacity in Russia. The disruptions have pushed diesel prices sharply higher.
In the United States, diesel futures climbed to around a 52-month high on Tuesday after surging about 51% over the past 10 weeks.
The sharp increase in diesel prices has also driven the diesel crack spread — a measure of refinery profit margins — to a record level of nearly $106 a barrel, according to LSEG data.
The renewed escalation between the US and Iran has heightened concerns over the security of oil supplies through the Strait of Hormuz, through which a significant share of global energy supplies normally passes, adding further uncertainty to already volatile international energy markets.
Story by Reuters
