Brent tops $92 as US-Iran strikes and tanker diversions rattle oil
Why it matters: Higher crude and diesel costs are already lifting US fuel prices, with gasoline averaging $4.06 a gallon and diesel at $5.13.
Oil extended its rally Wednesday as the US and Iran traded fresh attacks and shipping risks spread beyond the Strait of Hormuz. Brent crude rose 1.1% to $92.01 a barrel, while US West Texas Intermediate gained 1% to $85.16 after both benchmarks settled at five-week highs a day earlier. Three tankers carrying Saudi crude to China and India turned back in the Red Sea after warnings from Yemen's Iran-aligned Houthis, who threatened vessels carrying Saudi oil and declared a naval blockade of Saudi Arabia. The disruption added to supply fears after the Caspian Pipeline Consortium halted receiving Kazakh oil following attacks on tankers at its Black Sea terminal. In the US, the energy shock is feeding through to consumers: AAA put average gasoline at $4.06 a gallon, while the EIA diesel benchmark jumped to $5.13.