Oil prices jump 4pc on supply fears

Dawn reported that oil prices climbed about 4 per cent to a one-week peak on Tuesday, as renewed fighting between the US and Iran revived concerns about supply disruption from the Middle East. Brent futures gained $3.44, or 3.8 per cent, to $93.93 a barrel by 1:10 p.m. EDT, while US West Texas Intermediate rose $3.72 to $89.48.

Fresh American air strikes on Iranian targets on Tuesday undercut hopes that the weekend exchange of fire would stay contained. Prices had already risen after that first direct clash since July and after reports that two tankers were hit as they left the Strait of Hormuz, which Iran has effectively shut to shipping. Tehran stayed defiant, warning it would block oil exports from the Gulf despite a threat from President Donald Trump to hit Iran hard and a warning of new US sanctions from Treasury Secretary Scott Bessent.

Disruptions at refineries in the Middle East and Russia, the latter linked to Ukrainian attacks, have pushed diesel prices sharply higher. According to LSEG data, US diesel futures traded near a 52-month high after climbing roughly 51 per cent over 10 weeks, lifting the refining margin measure to a record near $106 a barrel.