Oil prices surged more than 4% on Tuesday, settling at five-week highs as renewed U.S.-Iran military action intensified concerns over prolonged disruptions to Middle Eastern energy supplies. Brent crude rose $4.16, or 4.6%, to settle at $94.65 per barrel, while WTI gained $4.46, or 5.2%, to $90.22. Brent recorded its highest close since July 24, while WTI reached its highest settlement since July 23.

The rally accelerated after the U.S. launched new strikes against Iranian targets, diminishing hopes that last weekend’s exchange of attacks would remain contained. Tehran responded defiantly, warning it would prevent oil exports from the Gulf, while continued threats to commercial shipping reinforced concerns over the effective closure of the Strait of Hormuz.

Supply concerns are also contributing to a sharp increase in refined fuel prices. Global refinery disruptions, particularly in the Middle East and Russia, have pushed diesel prices sharply higher. U.S. diesel futures reached a 52-month high, while refining margins climbed to record levels as fuel supplies tightened.

Markets are now watching U.S. inventory data for signs of additional supply pressure. Analysts expect crude inventories to have declined by approximately 800,000 barrels in the week ending August 28, which would mark the first weekly inventory draw in five weeks.

With direct military action escalating and shipping through Hormuz remaining severely constrained, markets are pricing in a significantly higher geopolitical risk premium and the growing possibility of sustained global supply disruptions.