WASDE Report Looms as Oil Prices Spike Amid Escalating Middle East Tensions

Commodity markets are on edge ahead of Friday's WASDE report as escalating tensions between the U.S. and Iran in the Strait of Hormuz drive oil prices toward $100 a barrel.

Diesel prices hit record highs, while Brent crude and West Texas Intermediate climbed higher. According to Mike Zuzolo of Global Commodity Analytics, fresh Department of Energy figures show oil shut-ins and closure-related production disruptions tied to the conflict are rising, reaching 6.7 million barrels a day in August.

This energy shock has implications for grains, with managed money funds playing catch-up across corn, soybean, and wheat after underestimating the escalation of the Middle East conflict.