Oil prices climbed to a six-week high on Monday after the U.S. and Iran exchanged military strikes over the weekend and Saudi Aramco facilities were reportedly hit in fresh attacks. WTI briefly topped $93 a barrel while Brent touched $97.93, with the escalation also pushing gasoline and diesel prices higher.
Oil prices jumped to their highest level in six weeks on Monday as the U.S. and Iran traded strikes over the weekend, deepening the Middle East conflict.
Crude benchmarks surge
West Texas Intermediate futures climbed 1.3% to $92.68 a barrel and briefly surpassed $93, the highest level since late July. Brent crude rose 1.3% to $97.52 and touched $97.93 at one point, also its highest since July 23.
Saudi Aramco oil facilities were hit in fresh strikes on Monday, according to a Financial Times report. Damage was still being assessed at the facility in the Saudi Arabian city of Jizan, home to a 400,000-barrel-per-day refinery, and it is not immediately clear who was responsible for the attack.
Weekend strikes raise the stakes
The market was already on edge after a weekend flare-up. The U.S. military struck three Iranian oil tankers on Saturday after Iran launched ballistic missiles at two Navy warships. According to U.S. Central Command: "multibillion-dollar shadow network", describing the three ships' role in funding Iran's Revolutionary Guard and its regional proxies.
The Iranian Foreign Ministry denounced the attacks on commercial vessels as unlawful and economically damaging. The strikes came about a week after fighting between the U.S. and Iran resumed following roughly a month of relative calm in a conflict that passed the six-month mark in August.
Fuel costs climb too
The rise in crude oil has pushed up the cost of other fuels, with gasoline and diesel both hitting record highs for a Labor Day weekend.
Source: CNBC
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