A process is disclosed for the production of refinery transportation fuel or components for refinery blending of transportation fuels having a reduced amount of sulfur and/or nitrogen-containing impurities. The process involves contacting a hydrocarbon feedstock containing the above impurities with an immiscible phase containing hydrogen peroxide and acetic acid in an oxidation zone to selectively oxidize the impurities. After a gravity phase separation, the hydrocarbon phase containing any remaining oxidized impurities, is passed to an extraction zone wherein aqueous acetic acid is used to extract a portion of any remaining oxidized impurities. A hydrocarbon stream having reduced impurities can then be recovered. The acetic acid phase effluents from the oxidation and the extraction zones can then be passed to a common separation zone for recovery of the acetic acid and for optional recycle back to the oxidation and extraction zones.