Oil Prices Soar on Renewed US-Iran Tensions
Oil prices surged more than $4 a barrel on Tuesday, reaching a five-week high, as concerns over supply disruptions in the Middle East intensified following renewed US-Iran fighting. Brent futures rose $4.16, or 4.6%, to settle at $94.65 a barrel, while WTI crude increased $4.46, or 5.2%, to close at $90.22.
The latest hostilities sparked fears of prolonged disruptions to energy flows through the Strait of Hormuz, with Saxo Bank analyst Ole Hansen noting that 'the fresh hostilities raised concerns about prolonged disruptions to energy flows through the Strait of Hormuz.'
The spike in oil prices was also driven by refinery disruptions around the world, particularly in the Middle East and Russia. Diesel futures jumped to a 52-month high in the US, with the diesel crack spread reaching a record high of around $107 a barrel.