Oil rallies for the week as US-Iran fighting resumes; diesel hits record high
Inactive oil pump jacks at an agricultural fields in Dacano, Colorado, U.S., May 11, 2026. REUTERS/Kevin Mohatt
Read a summary of this article on FAST.
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST
Tap here to return to FAST
FAST
Sept 4 : Oil prices were on course to gain over 6 per cent for the week as the U.S. and Iran resumed military exchanges in their conflict, now in its seventh month, while U.S. diesel prices hit a record high.
A rally in oil prices combined with a much steeper increase in fuel prices has pushed inflation and government borrowing costs higher around the world and intensified warnings that the global economy might be heading for a hard landing.
“All sectors of the economy are affected by diesel. This is one of the reasons why the government bond yields in the United States are so high, it’s the expectation that inflation will continue to go up,” said Claudio Galimberti, chief economist at Rystad Energy.
Average U.S. diesel prices hit record highs as renewed U.S.-Iran hostilities and Ukrainian attacks on Russian refineries increased supply disruptions.
Guess Word
Crack the word, one row at a time
Buzzword
Create words using the given letters
Mini Sudoku
Tiny puzzle, mighty brain teaser
Mini Crossword
Small grid, big challenge
Word Search
Spot as many words as you can
ANALYSTS AND TRACKERS INDICATE OIL FLOWS STILL DISRUPTED
The U.S. government has said Middle Eastern oil flows have returned to near normal levels in recent weeks, but analysts and tanker trackers have said flows remain seriously disrupted.
Brent crude futures were down 14 cents or 0.15 per cent on the day at $95.38 a barrel by 1015 GMT, while U.S. West Texas Intermediate crude futures were down 37 cents, or 0.41 per cent, at $90.93.
However, for the week, Brent was up 6.6 per cent. WTI was up 8.8 per cent, its strongest weekly performance since July 13.
U.S. attacks this week that killed and wounded dozens, including Iranian civilians, were the fiercest clashes between the two countries since July.
Defence Minister Israel Katz renewed warnings that Israel would “cripple” Iran’s military and civilian infrastructure, including energy facilities, if Tehran attacked it.
A U.S. campaign to throttle Iran’s economy by blockading its oil exports and stopping sanctions evasion is growing increasingly difficult to withstand, three senior Iranian sources said.
“The combination of renewed U.S.-Iran hostilities and ongoing uncertainty around the Strait of Hormuz has been enough to reprice risk higher,” said Tim Waterer, chief market analyst at KCM Trade.
Four commodity vessels transited the key Strait of Hormuz on Thursday, well below the 10-day average tally of about 15, preliminary shipping data showed.
Iraq increased its August oil exports to about 2.34 million barrels per day from about 1.35 million bpd in July, two Iraqi energy officials said on Wednesday.
Citi raised its average Brent crude price forecast for the third quarter to $86 a barrel from $80, saying the reopening of the strait was taking longer than previously expected.
ANZ analysts also raised their Brent crude forecast on Friday to $95 a barrel in the short term, with upside risk if the Middle East conflict intensifies.
Source: Reuters
Sign up for our newsletters
Get the CNA app
Stay updated with notifications for breaking news and our best stories
Get WhatsApp alerts
Join our channel for the top reads for the day on your preferred chat app
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST
Tap here to return to FAST
FAST
