Oil posted its best week since mid-to-late July after military action broke out again between the U.S. and Iran, reviving fears of supply disruption through the Strait of Hormuz. Brent settled at $95.85 a barrel and WTI at $91.22 a barrel, both roughly three-month highs, while U.S. diesel prices hit a record.
Oil prices rose sharply for the week as U.S. and Iranian forces exchanged strikes for the first time in weeks, reviving concern over the flow of crude through the Strait of Hormuz. At home, U.S. diesel prices touched a record high.
Brent and WTI hit three-month highs
Brent crude futures expiring in November soared 8.8% for the week to settle at $95.85 a barrel, while WTI crude futures expiring in October surged 9.4% to $91.22 a barrel. Both contracts sit at their highest levels in roughly three months.
Both sides traded tit-for-tat strikes this week, though President Donald Trump told reporters the latest flare-up would not last long. The U.S. leader said American strikes had targeted infrastructure Iran had been rebuilding around the strait, while Iranian state media said Tehran had retaliated against U.S. military bases in regional countries. Treasury Secretary Scott Bessent said Thursday evening the European Union had joined Washington's economic campaign against Tehran, posting that "we will not stop until every remaining financial lifeline has been severed".
Diesel prices eclipse 2022 record
The rally at the pump was just as sharp. GasBuddy data showed the national average diesel price reaching a record $5.85 a gallon, topping the previous benchmark of $5.82 a gallon set in June 2022. Meanwhile, AAA put the national average gas price at $4.1474 a gallon, up from $4.1436 a day earlier.
Supply data added further support. U.S. commercial crude stocks fell to about 424.5 million barrels in the week ended August 28, down from 428.9 million barrels a week earlier, according to the Energy Information Administration, while the Strategic Petroleum Reserve stood at about 286.6 million barrels. OPEC+ is expected to keep its October output policy unchanged when it meets on Sunday, Reuters reported, citing sources, as the group completes the unwinding of one layer of crude oil production cuts.
Source: Investing.com
Trading involves risk.
Risk Disclaimer
