US-Iran Tensions Send Oil Prices Soaring

Oil prices surged by more than $4 a barrel on Tuesday (Sept 1) due to renewed US-Iran fighting, reaching 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 jumped $4.46, or 5.2%, to settle at $90.22.

The prices had already increased after the first exchange of direct attacks between the two countries in July and reports of two tankers being hit leaving the Strait of Hormuz. Iranian targets were struck by US forces on Tuesday, prompting concerns about prolonged disruptions to energy flows through the waterway.

Disruptions at refineries around the world have caused diesel prices to spike, with diesel futures reaching 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.