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🇸🇬 Singapore /Economy & Trade

Oil prices settle up more than $4 a barrel on renewed US-Iran fighting

From CNA · () English

Summarized by DistantNews. Read the original for the full story.

At a glance

Newswire Named sources Ongoing story
  • Oil prices settled more than $4 a barrel higher after renewed U.S.-Iran fighting increased fears of supply disruptions from the Middle East.
  • Brent settled at $94.65 a barrel and West Texas Intermediate at $90.22, both five-week highs.
  • Diesel prices also surged as refinery disruptions and the conflict placed further pressure on energy markets.

Oil prices climbed more than $4 a barrel on Tuesday as renewed fighting between the United States and Iran revived fears that supplies from the Middle East could be disrupted.

Brent crude rose $4.16, or 4.6%, to settle at $94.65 a barrel. U.S. West Texas Intermediate gained $4.46, or 5.2%, to settle at $90.22. Both contracts reached their highest closing levels in about five weeks.

Today at 12 p.m. ET (1600 GMT), U.S. forces began striking Islamic Revolutionary Guard Corps targets in Iran.

— U.S. Central CommandThe command announced the new air strikes in a post on X.

The U.S. launched new air strikes on Iranian targets, ending hopes that last weekend’s exchange of fire might not lead to a wider renewal of hostilities. Oil prices had already risen after the earlier attacks and reports that two tankers were hit while leaving the Strait of Hormuz, a major route for global oil supplies that Iran has effectively closed to shipping.

Tehran warned it would prevent oil exports from the Gulf. President Donald Trump threatened to hit Iran “hard,” while Treasury Secretary Scott Bessent warned that Washington was preparing new sanctions. U.S. Central Command said the strikes targeted Islamic Revolutionary Guard Corps positions after attempted attacks on commercial shipping in the strait and American personnel in the region.

The strikes follow recent attempted attacks by the IRGC against commercial shipping in the Strait of Hormuz and against American service members deployed to the region.

— U.S. Central CommandThe command gave its stated justification for the strikes.

The fighting also pushed up concern about prolonged disruptions to energy flows through Hormuz, said Saxo Bank analyst Ole Hansen. Diesel prices were under additional pressure from refinery disruptions around the world, especially in the Middle East and Russia. U.S. diesel futures reached a 52-month high after rising 51% over 10 weeks, while the diesel crack spread reached about $107 a barrel, according to LSEG data.

The market was also awaiting U.S. inventory reports. Analysts estimated that companies withdrew 0.8 million barrels of crude from storage in the week ended Aug. 28. If confirmed, it would be the first decline in five weeks.

Hard

— Donald TrumpThe U.S. president threatened a forceful response to renewed Iranian strikes.
About this summary

Originally published by CNA. 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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