Crude oil prices climbed toward $92 per barrel on Friday and were on track for a weekly gain of about 10%, supported by renewed hostilities in the Middle East and mounting uncertainty over shipping through the Strait of Hormuz. The United States conducted new strikes against Iran this week after roughly a month of relative calm, prompting Tehran to retaliate by targeting US bases in the region and vessels transiting Hormuz.
Only six commodity vessels passed through the strait on Wednesday, down from 11 on Tuesday and compared with a 10-day average of nearly 13. Damage to refineries in both the Middle East and Russia, combined with limited spare processing capacity elsewhere to offset these disruptions, is expected to keep global fuel prices elevated into next year.
At the same time, US diesel prices this week reached their highest level since mid-2022, while inventories in Europe remain significantly below typical seasonal levels.