US-Iran Fighting Sends Oil Prices Soaring

Oil prices surged on Tuesday due to renewed US-Iran fighting, settling at a five-week high. Brent futures rose $4.16, or 4.6%, to settle at $94.65 a barrel, while US West Texas Intermediate (WTI) crude rose $4.46, or 5.2%, to settle at $90.22.

The increase was triggered by the US launching new air strikes on Iranian targets, quashing hopes that an exchange of fire last weekend might not presage a wider renewal of hostilities. Tehran remained defiant, warning that it would prevent oil being exported from the Gulf.

Disruptions at refineries around the world have caused diesel prices to spike, with diesel futures jumping to a 52-month high in the US after soaring 51% over the past 10 weeks. The diesel crack spread, which measures refining profit margins, reached a record high of around $107 a barrel.