Oil Nears $100 Per Barrel as Middle East Tensions Spike

Oil prices are set to close above $100 per barrel for the first time since mid-May, as US diesel prices hit a record high. The Strait of Hormuz, a critical shipping route, has seen disruptions due to attacks by Iran and its allies. The International Energy Agency said that global oil supply and demand will fall further than previously thought this year.

US President Donald Trump has not signaled any intention to ease the pressure on Iran. In fact, he warned of potential further action against Iranian targets. Meanwhile, China's state planner announced a price cap increase on petrol and diesel from September 12.

Vessel transits at the Strait of Hormuz have fallen significantly, with preliminary data showing only seven ships passed through yesterday compared to an average of 15 over the past 10 days. Analysts warn that prolonged supply disruptions could lead to higher prices for refined products like diesel.