Oil prices jump over USD4 a barrel

Oil prices climbed by over USD 4 a barrel on Tuesday, according to Business Recorder, reaching their highest closing levels in roughly five weeks. Brent climbed USD 4.16, or 4.6 percent, to close at USD 94.65 a barrel, while US West Texas Intermediate gained USD 4.46, a 5.2 percent jump, to end at USD 90.22. Brent's close was its highest since July 24, and WTI's was its strongest since July 23.

Traders responded to renewed hostilities between Washington and Tehran, which heightened concerns that supplies from the Middle East could be disrupted further. The US carried out fresh air strikes on Iranian targets, dashing hopes that last weekend's exchange of fire would stay contained. Earlier reports that two tankers had been hit after leaving the Strait of Hormuz, a route Iran has effectively shut to shipping, had already lifted prices.

Tehran said it would prevent oil exports from the Gulf, despite a threat from President Donald Trump to strike Iran hard and a warning from Treasury Secretary Scott Bessent about new sanctions. US diesel futures reached a 52-month high after rising 51 percent over 10 weeks, while the refining margin measured by the diesel crack spread hit a record near USD 107 a barrel, according to LSEG data. Refinery disruptions in the Middle East and Russia have pushed diesel prices higher.