US-Iran Conflict Sends Oil Prices Soaring by 4%

Oil prices surged about 4% to a one-week high on Tuesday due to renewed fears of supply disruptions from the Middle East following fresh US-Iran fighting. 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 CLc1 increased by $3.72, or 4.3%, to $89.48.

The recent escalation in hostilities between the two nations has raised concerns about prolonged disruptions to energy flows through the Strait of Hormuz. US Central Command confirmed that US forces began striking Islamic Revolutionary Guard Corps targets in Iran on Tuesday at 12 p.m. ET (1600 GMT) in response to recent Iranian attacks on commercial shipping and American service members.

Disruptions at refineries around the world, particularly in the Middle East due to the ongoing conflict, have caused diesel prices to spike. Diesel futures HOc1 were trading around a 52-month high on Tuesday after soaring about 51% over the past 10 weeks, boosting the diesel HOc1-CLc1 crack spread to a record high near $106 a barrel.