Oil Keeps Rising and Diesel Hits $6 a Gallon as Middle East Tensions Mount

Mounting fears in the markets that clashes in the Middle East could escalate and further disrupt energy supplies briefly pushed the price of oil above $110 a barrel on Friday, while U.S. diesel rose above $6 a gallon.

Concerns over oil supplies, already heightened by the U.S. war against Iran, broadened this week with reports that the Houthi militia had seized a critical port on the Red Sea, presenting a new threat to shipping in the area.

The price of Brent crude oil, the international benchmark, surged before easing to about $106 a barrel, and West Texas Intermediate crude, the U.S. standard, was trading at nearly $101 a barrel.

The average price of a gallon of diesel fuel jumped to $6.06, according to the AAA motor club, a 60 percent rise since the United States and Israel attacked Iran on Feb. 28. In response, Iran has effectively blocked most ships from passing through the Strait of Hormuz, the narrow waterway between the Persian Gulf and the Gulf of Oman. During normal times, about a fifth of the world’s crude oil flows through the strait.

With assistance from the U.S. Navy, a few tankers have been able to get through, but Iran has signaled in recent days that it was willing to be more aggressive in exerting control over the strait.

U.S., European, African and Asian oil refineries have increased production of diesel, gasoline and other fuels to make up for the loss of supplies from the Middle East and Russia, where refineries have come under attack by Ukraine.