Oil Prices Soar Amid Escalating US-Iran Tensions
Oil prices surged on Tuesday, hitting a five-week high as tensions between the US and Iran escalated. Brent futures rose by $4.16 (4.6%) to settle at $94.65 a barrel, while US West Texas Intermediate crude increased by $4.46 (5.2%) to $90.22.
The price jump was triggered by renewed fighting between the two countries, with the US launching new air strikes on Iranian targets. This move followed an exchange of fire last weekend and reports of tankers being hit in the Strait of Hormuz, a critical global oil supply route.
Tehran has warned that it will prevent oil exports from the Gulf, despite threats from Washington to impose new sanctions. Analysts say the fresh hostilities have raised concerns about prolonged disruptions to energy flows through the Strait of Hormuz.
In related news, diesel prices have spiked due to refinery disruptions in the Middle East and Russia. US diesel futures hit a 52-month high on Tuesday after soaring 51% over the past 10 weeks.