Oil Prices Soar as US-Iran Tensions Escalate
Oil prices surged by nearly 4% on Tuesday, reaching a one-week high due to renewed fears of supply disruptions from the Middle East. The uptick in oil prices was triggered by a resumption of fighting between the US and Iran, which sparked concerns about the security of global oil supplies.
Brent futures rose $3.44, or 3.8%, to $93.93 a barrel at 1:10 p.m. EDT (1710 GMT), while US West Texas Intermediate crude jumped by $3.72, or 4.3%, to $89.48. These prices would mark the highest close for Brent since August 20 and for WTI since July 23.
The escalation of tensions between the two nations was fueled by new air strikes launched by the US on Tuesday, which quashed hopes that an exchange of fire last weekend might not presage a wider renewal of hostilities. The Strait of Hormuz, a global oil supply waterway, remains closed to shipping due to Iranian actions.
Tehran remained defiant in the face of renewed aggression from Washington, warning that it would prevent oil being exported from the Gulf. US President Donald Trump threatened to hit Iran 'hard' in response to the renewed strikes, while US Treasury Secretary Scott Bessent warned that Washington was about to impose new sanctions.
Disruptions at refineries around the world, particularly in the Middle East due to the US-Iran war and in Russia due to Ukrainian attacks, have caused diesel prices to spike. In the US, diesel futures were trading around a 52-month high on Tuesday after soaring by about 51% over the past 10 weeks.