US-Iran Conflict Sends Oil Prices Soaring Towards $91 a Barrel

Oil prices surged as tensions escalated in the Middle East following fresh strikes between the US and Iran. The Strait of Hormuz, a key oil chokepoint, has been targeted with mines.

The price of Brent crude for November delivery rose towards $91 a barrel, while West Texas Intermediate (WTI) was near $86 a barrel. This comes after the US Central Command carried out strikes against rocket launchers preparing to send mines into the Strait of Hormuz.

In response, the Islamic Revolutionary Guard Corps said it had attacked US air bases in Jordan. Separately, Iranian state television reported that an unidentified supertanker was hit by two mines while attempting to pass through the southern route in the strait.

The US-Iran conflict has lifted product prices, particularly diesel, with average retail costs rising 57% this year, according to the American Automobile Association. Goldman Sachs analysts said rising strikes on refineries in the Middle East and Russia have further constrained global refining capacity.