Oil Prices Soar as US-Iran Tensions Escalate
Oil prices are poised to post a weekly gain of over 6% as tensions between the US and Iran escalate, fueled by renewed military exchanges in their seven-month-old conflict.
Average US diesel prices have hit record highs due to supply disruptions caused by Ukrainian attacks on Russian refineries and ongoing hostilities with Iran.
Claudio Galimberti, chief economist at Rystad Energy, attributed the sharp rise in oil prices to the expectation of continued inflation, which is being driven up by fuel costs.
Analysts and tanker trackers report that Middle Eastern oil flows have not yet returned to normal levels despite the US government's claims, with Brent crude down 0.15% at $95.38 a barrel and WTI up 8.8% for the week, its strongest performance since July 13.