US-Iran Tensions Spark Fresh Oil Price Surge
Oil prices surged about 2% to a one-week high on Wednesday as renewed fighting between the U.S. and Iran revived concerns over Middle East supply disruptions.
The Brent futures rose $1.55, or 1.7%, to $92.04 a barrel at 10:33 a.m. EDT (1433 GMT), while U.S. West Texas Intermediate (WTI) crude rose $1.84, or 2.2%, to $87.60.
The recent uptick in tensions between the two nations has led to fears of prolonged disruptions to energy flows through the Strait of Hormuz, a key global oil supply waterway. Iran's threats to reciprocate if the U.S. honors its commitments under a June interim deal on halting their conflict have added to the uncertainty.
Analysts expect oil prices to remain above $80 a barrel in 2026 due to ongoing shipping disruptions, according to Reuters' August poll. The number of visible commodity vessels transiting the Strait of Hormuz has dropped to about five, below the 10-day average of around 14 per day.
The conflict has also led to diesel price spikes, with U.S. diesel futures trading at a five-month high and a record-high diesel crack spread of over $104 a barrel.