Oil Prices Soar on Ongoing US-Iran Hostilities

Oil prices surged on Friday, posting significant weekly gains as hostilities between the US and Iran continued to disrupt supply routes in the Middle East. The Brent crude futures settled at $92.68 a barrel, while West Texas Intermediate (WTI) crude rose to $91.48 a barrel.

The sharp increase in oil prices was driven by the ongoing conflict between the two nations, which has impaired oil supply routes and raised concerns about economic growth. According to Claudio Galimberti, chief economist at Rystad Energy, 'All sectors of the economy are affected by diesel. This is one of the reasons why the government bond yields in the United States are so high, it's the expectation that inflation will continue to go up.'

Average US diesel prices reached a record high of $5.85 a gallon, while heating oil futures have also surged as winter approaches.