Hormuz Fears Push Oil Prices Toward $100

Oil prices have surged over 4% as tensions between the US and Iran escalate, raising concerns about disruptions to energy flows through the Strait of Hormuz.

The latest exchange of strikes has reversed a tentative improvement in sentiment seen during recent diplomatic efforts, according to Commerzbank Research analysts. Brent crude traded around $95.50-$96 a barrel in Asian hours, while West Texas Intermediate held near $91 after both benchmarks surged more than 4% on Tuesday.

The supply problem is not confined to the Middle East, with Russia extending its diesel export restrictions through September due to repeated Ukrainian attacks on energy infrastructure tightening domestic fuel availability. This adds another layer of stress to global middle-distillate markets at a time when Persian Gulf disruptions are already constraining supply, according to ING commodity strategists Warren Patterson and Ewa Manthey.