U.S.-Iran Conflict Drives Oil Prices Higher Amid Fears of Ongoing Supply Disruption

Oil prices surged after fighting broke out in the U.S.-Iran conflict for the first time in four weeks, sparking fears of ongoing supply disruption. The contract for Brent crude oil jumped by 3.4% to $91.09 a barrel, while the October contract for American crude saw a similar increase to $86.22.

The renewed hostilities were driven by concerns that the crisis would worsen and persist longer, according to experts. PVM Oil Associates' analyst Tamas Varga said, 'Supply risk will persist and oil inventories will continue to deplete in the coming weeks and months.'

Goldman Sachs noted that rising strikes on refineries have constrained global refining capacity, pushing refined products margins to new highs.