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Oil Prices Catch Fire as Renewed US-Iran Tensions Push Crude More Than $4 Higher
🇬🇷 Greece /Economy & Trade

Oil Prices Catch Fire as Renewed US-Iran Tensions Push Crude More Than $4 Higher

From Ta Nea · () Greek

Translated from Greek and summarized by DistantNews. Read the original for the full story.

At a glance

Newswire Named sources Ongoing story
  • Brent crude rose $4.16, or 4.6%, to close at $94.65 a barrel, while WTI gained $4.46, or 5.2%, to reach $90.22.
  • New US strikes on Iranian targets and reports of tankers hit near the Strait of Hormuz increased concern over disruptions to regional energy flows.
  • Diesel prices also surged, with US diesel futures reaching a 52-month high amid refinery disruptions in the Middle East and Russia.

Oil prices climbed more than $4 a barrel on Tuesday, closing at five-week highs as renewed fighting between the United States and Iran raised fears of further disruption to supplies from the Middle East.

Brent futures gained $4.16, or 4.6%, to settle at $94.65 a barrel. US West Texas Intermediate crude rose $4.46, or 5.2%, to $90.22. Those were the highest closing prices for Brent since July 24 and for WTI since July 23.

The latest increase followed new US air strikes on Iranian targets. The attacks dashed hopes that an exchange of fire over the weekend would not lead to a wider escalation. Oil had already moved higher after the first direct attacks since July and reports that two tankers were hit while leaving the Strait of Hormuz, a major global oil shipping route that Iran has effectively closed to navigation.

Today at 12 p.m. ET (1600 GMT), US forces began strikes against Islamic Revolutionary Guard Corps targets in Iran.

— US Central CommandThe command announced the strikes that helped drive concerns about supply disruptions.

Tehran continued to warn that it would block oil exports from the Gulf. US President Donald Trump threatened to hit Iran “hard” in response to Iranian attacks, while Treasury Secretary Scott Bessent warned of new sanctions. US Central Command said its forces had begun strikes on Islamic Revolutionary Guard Corps targets in Iran, citing recent attempted attacks on commercial vessels in the Strait of Hormuz and on US troops in the region.

The renewed hostilities “heightened concerns about prolonged disruptions to energy flows through the Strait of Hormuz,” said Saxo Bank analyst Ole Hansen. Diesel prices added to the pressure. Disruptions at refineries worldwide, particularly in the Middle East and Russia, sent US diesel futures to a 52-month high after a 51% rise over 10 weeks. LSEG data put the diesel crack spread, a measure of refining margins, at a record of about $107 a barrel. Traders were also watching weekly US oil inventory reports from the American Petroleum Institute and the Energy Information Administration.

The renewed hostilities heightened concerns about prolonged disruptions to energy flows through the Strait of Hormuz.

— Ole HansenThe Saxo Bank analyst described the market’s reaction to the escalation.
About this summary

Originally published by Ta Nea in Greek. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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