Oil prices soared on Thursday, extending their weekly surge, with U.S. West Texas Intermediate crude futures topping $100 a barrel for the first time since late May a day after Brent crude futures did the same.

The furious rally has been driven by a resurgence in military strikes between the U.S. and Iran, while escalating fighting between Yemen’s Iran-backed Houthi group and Saudi Arabia has further exacerbated concerns about oil supply disruptions.

 The national average price for diesel in the United States exceeded $6 per gallon for the first time on Thursday, according to GasBuddy, as ongoing conflicts have tightened supply.

Oil futures climbed above $100 per barrel Thursday amid the continuing U.S.-Iran war and Ukrainian strikes on Russian refineries. Brent crude settled at $107.63 per barrel while West Texas Intermediate futures settled at $102.48 per barrel, marking the highest levels since mid-May.

Gold prices shed about 2% on Thursday, dragged down by a stronger U.S. dollar after a mixed August producer inflation report boosted Federal Reserve rate hike expectations. An extended weekly surge in oil prices also added to concerns over price pressures.  

At 15:08 ET (19:08 GMT), spot gold lost 1.9% to $4,317.84/oz, while gold futures declined 2.2% to $4,358.67/oz. 

The U.S. dollar made small moves on Wednesday, as the focus remained on the Japanese yen amid its massive rally. Currency market participants were gearing up for a crucial week ahead that will see interest rate decisions from the Federal Reserve, the Bank of Japan, and the European Central Bank.

The U.S. bond market was also in the spotlight after a highly anticipated Treasury Department update on buyback operations disappointed investors.

At 15:42 ET (19:42 GMT), the U.S. dollar index, which tracks the greenback against a basket of six major peers, was up 0.1% to 98.83.