Brent nears $94 as US squeeze on Iran lifts oil for a second week
Why it matters: Fading hopes for a quick Strait of Hormuz reopening are pushing diesel prices and refinery margins sharply higher.
Oil headed for a second straight weekly gain Friday as Washington prepared a new campaign to choke Iran’s economy, adding to fears of prolonged disruption in the Strait of Hormuz. Brent crude traded near $94 a barrel after closing above $93 on Thursday for the first time since July 24, while US benchmark WTI stayed below $87 for October delivery. Treasury Secretary Scott Bessent said details of the measures will come Monday and described them as the toughest sanctions yet on Tehran. The harder US line has dimmed expectations for a near-term diplomatic breakthrough, with vessel traffic still severely reduced after attacks this week. Analysts said the strain is showing up most in fuel markets, where diesel prices and refining margins have surged amid tight inventories and supply concerns.