US-Iran Tensions Send Oil Prices Plummeting to $105

Oil prices have fallen to $105 per barrel after hitting their highest level since May. The price of Brent crude, the international standard, dropped by 3.5% on Friday, while US benchmark crude was down 2.8%. This decline comes as tensions between the US and Iran continue to escalate.

US diesel prices have also reached a new record high, surpassing $6 per gallon on average. The Strait of Hormuz, a critical waterway for global oil transport, continues to see reduced oil flows, with levels remaining 'well below pre-war levels,' according to ING commodities strategists Warren Patterson and Ewa Manthey.

The situation remains fragile, with Patterson and Manthey noting the underscoring of how precarious the current state is. The sharp increase in US diesel prices is a direct result of these rising tensions, which have driven up oil prices globally.