Escalating tensions between the United States and Iran have stoked fears that energy shipments through the Strait of Hormuz could face prolonged disruptions, putting oil on track for its biggest weekly advance since July. West Texas Intermediate crude is hovering near $92 a barrel, up more than 9% for the week, while Brent settled just under $96 in the previous session.

Before the recent flare-up, markets had enjoyed a relatively calm stretch. That changed early this week when Washington launched airstrikes, prompting swift retaliation from Tehran targeting American military facilities in the region. Iranian forces have also kept up attacks on vessels passing through the strait and fired missiles toward Jordan, Kuwait, and Bahrain.

Israel, for its part, has signaled it is ready to resume hostilities if necessary, warning that Iran's latest strikes would remove any lingering constraints and raise the odds of another round of military confrontation. Crude futures have now climbed nearly 60% so far this year, with refined products like diesel gaining even more sharply amid the twin shocks of Middle East conflict and the ongoing Russia-Ukraine war.

In the United States, retail prices for the industrial fuel hit their highest level since mid-2022 this week, while European inventories remain far below typical seasonal norms, adding further pressure to an already taut global supply picture.