Oil rallies for the week as U.S.-Iran fighting resumes; diesel hits record high

Business Recorder reported that oil prices were heading for a weekly gain above 6% as military clashes between Washington and Tehran resumed in a conflict that has reached its seventh month. Brent rose 6.6% over the week and West Texas Intermediate climbed 8.8%, its strongest weekly move since July 13, while average U.S. diesel prices hit a record high.

Brent futures eased 14 cents to $95.38 a barrel by 1015 GMT, while WTI slipped 37 cents to $90.93, though both remained higher for the week. American strikes this week left dozens dead or injured, among them Iranian civilians, marking the heaviest exchanges since July. Israeli Defence Minister Israel Katz again warned that Iran's military and civilian infrastructure, including energy sites, could be severely damaged if Tehran attacked Israel.

Rystad Energy chief economist Claudio Galimberti said diesel costs touch every sector, which he linked to higher U.S. bond yields on expected inflation. KCM Trade's Tim Waterer said renewed hostilities and unsettled conditions in the Strait of Hormuz had lifted risk pricing. Preliminary shipping data showed only four commodity vessels transited the strait on Thursday, against a 10-day average of about 15.