NEW YORK: Oil prices jumped about 4 per cent to a one-week high on Tuesday as a resumption in fighting between the US and Iran renewed fears of supply disruptions from the Middle East.

Brent futures rose $3.44, or 3.8pc, to $93.93 a barrel at 1:10 p.m. EDT (1710 GMT), while US West Texas Intermediate crude rose $3.72, or 4.3pc, to $89.48.

That would mark the highest close for Brent since Aug 20 and for WTI since July 23.

The US launched new air strikes on Iranian targets on Tuesday, quashing hopes that an exchange of fire last weekend might not presage a wider renewal of hostilities.

Oil prices had already risen after that first exchange of direct attacks since July and after reports of two tankers being hit leaving the Strait of Hormuz, the global oil supply waterway that Iran has effectively closed to shipping.

Tehran remained defiant, warning that it would prevent oil being exported from the Gulf, despite a threat by US President Donald Trump to hit Iran “hard” in response to the renewed Iranian strikes, and a warning from US Treasury Secretary Scott Bessent that Washington was about to impose new sanctions.

Diesel surge

Disruptions at refineries around the world, especially in the Middle East due to the US-Iran war and in Russia due to Ukrainian attacks, have caused diesel prices to spike.

In the US, diesel futures were trading around a 52-month high on Tuesday after soaring about 51pc over the past 10 weeks, boosting the diesel HOc1-CLc1 crack spread, which measures refining profit margins, to a record high near $106 a barrel, according to LSEG data.

Published in Dawn, September 2nd, 2026