Oil Prices Surge on US-Iran Conflict and Record Diesel Prices

Oil prices rose on Friday after US-Iran military exchanges resumed, pushing Brent crude futures to $96.28 a barrel and West Texas Intermediate (WTI) to $91.48.

The increase marked the end of a week that saw oil prices surge 7.6% for Brent and nearly 10% for US crude as supply routes in the Middle East remained impaired due to the ongoing conflict.

Citi raised its average Brent crude price forecast for the third quarter to $86 a barrel, citing the reopening of the Strait of Hormuz taking longer than expected.

Rystad Energy's chief economist Claudio Galimberti attributed the rally in oil prices to the impact of diesel on global economy and government borrowing costs, saying 'All sectors of the economy are affected by diesel.'