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US oil tops $90 as strikes on Iran raise Hormuz disruption fears
West Texas Intermediate surged as much as 5.1% after U.S. forces targeted Iran, while the diesel refining margin hit a record as refined-product supplies stayed tight.
U.S. oil prices rose above $90 a barrel for the first time since late July as fresh American strikes on Iran intensified concerns about longer disruptions to energy flows through the Strait of Hormuz, according to LiveMint Markets citing Bloomberg.
West Texas Intermediate climbed as much as 5.1% after U.S. Central Command said forces struck targets in Iran starting at 12 p.m. Eastern time Tuesday. The command cited “attempted attacks” against commercial shipping in Hormuz, after two oil supertankers were hit by projectiles while attempting to exit the waterway late Monday.
The renewed escalation has spilled into wider markets, with higher energy costs stoking worries about inflation and potentially higher interest rates. LiveMint Markets also noted global bond yields rose back to the highest level in almost two decades on Tuesday.
Crude gains have continued against a backdrop of stop-start diplomacy, while concerns about tight refined-product supply have been even more pronounced. Refined-product prices have rallied more sharply than crude, and LiveMint Markets reported the profit margin for producing diesel from crude reached a fresh all-time record Tuesday, as global diesel supplies remain constrained.
Latest closeWTI crude $90.79 ▲5.9%