Oil Prices Soar Amid Escalating Middle East Tensions
Oil prices are on track to end the week above US$100 a barrel for the first time since mid-May, despite falling on Friday. The benchmarks pared all early gains after reports that foreign ministers in the Middle East are trying to work out a temporary deal with Iran to manage shipping through the Strait of Hormuz.
The attacks from Yemen on Saudi energy facilities have raised fears of prolonged disruptions in the broader region, analysts say. 'While meaningful volumes are still moving through the Strait of Hormuz, flows remain well below pre-war levels, underscoring how fragile the situation has become,' ING analysts said in a note.
The US national average diesel price surpassed US$6 a gallon for the first time ever on Thursday, due to oil supply disruptions from the US-Iran war and Ukrainian attacks on Russia's refineries. Analysts are warning that the rally's durability will hinge on China, the world's largest crude importer.