Oil prices rise 2% as US-Iran fighting stokes supply fears

Business Recorder reported that oil prices advanced roughly 2% on Wednesday, reaching a one-week peak, after renewed fighting between the United States and Iran revived worries about supply disruptions from the Middle East. Brent crude futures added $1.55, equal to 1.7%, to trade at $92.04 a barrel by 10:33 a.m. EDT, while West Texas Intermediate rose 2.2% to $87.60.

The move followed the first direct exchange of attacks between the two countries since late July, along with reports that two tankers came under fire while leaving the Strait of Hormuz, a waterway Iran has effectively closed to shipping. Kpler data showed about five commodity vessels passing through the strait on Monday, well below the 10-day average of roughly 14 per day, and none of them were liquid tankers.

Separately, diesel prices have surged following refinery disruptions in the Middle East and Russia, with US diesel futures near a five-month high after climbing about 47% over 10 weeks. Analysts estimated that American crude stocks fell by 0.8 million barrels in the week ended August 28, which would mark the first drop in five weeks.