US-Iran Tensions Spark Oil Price Spike
Oil prices surged by about 4% on Tuesday to hit a one-week high due to renewed concerns over supply disruptions in the Middle East. The US launched new air strikes against Iranian targets, reigniting fears of hostilities between the two nations.
The Brent futures rose $3.44, or 3.8%, to $93.93 a barrel at 1:10 p.m. EDT (1710 GMT), while U.S. West Texas Intermediate crude rose $3.72, or 4.3%, to $89.48.
Iran remained defiant in the face of US threats, warning it would prevent oil from being exported from the Gulf. Analysts say the fresh hostilities have raised concerns about prolonged disruptions to energy flows through the Strait of Hormuz.
The price spike also sent diesel futures soaring, with prices trading around a 52-month high in the US. Disruptions at refineries due to the ongoing conflicts have caused diesel prices to rise sharply.