Brent and WTI surge to one-month peaks as US-Iran blockade and Ukrainian strikes on Russian refineries tighten supply.
Oil prices climbed to their highest levels in a month as escalating Middle East conflict and disrupted Russian fuel exports tightened supply. Brent and WTI both settled at one-month highs, driven by fears of disruptions in the Strait of Hormuz after the US reinstated a naval blockade on Iranian shipping.
Diesel refining margins reached record highs, outpacing crude gains, as Ukrainian strikes on Russian refineries curtailed diesel exports. The geopolitical risk premium overshadowed softer US inflation data, with traders focusing on supply-side threats rather than demand signals.
Despite overbought technical conditions, sentiment remains tilted toward further upside amid concerns the conflict could widen. Profit-taking risks exist but have not yet materialized in significant volumes.