US-Iran Tensions Send Oil Prices Soaring Amid Supply Disruptions
Oil prices are poised to gain over 6% for the week as tensions between the US and Iran escalate, despite dipping on Thursday.
The Brent crude futures contract was up 6.1% for the week, while the US West Texas Intermediate (WTI) crude futures contract had gained 8.3%
Cludio Galimberti, chief economist at Rystad Energy, said that all sectors of the economy are affected by diesel prices, which have hit record highs in the US.
The average U.S. diesel price has reached a new high as renewed hostilities between the US and Iran, combined with Ukrainian attacks on Russian refineries, have increased supply disruptions.
Citi raised its average Brent crude price forecast for the third quarter to $86 per barrel from $80, citing delays in the reopening of the Strait of Hormuz.