NEW YORK: Oil prices rose about 2percent on Thursday to their highest in six months, as traders worried about tensions between the US and Iran, which stepped up military activity in the oil-producing Middle East.
Brent futures were up USD1.23, or 1.8percent, to USD71.58 a barrel at 1551 GMT. US West Texas Intermediate (WTI) crude was up USD1.34, or 2.1percent, at USD66.53.
After advancing more than 4percent on Wednesday, Brent is on track to close at its highest since July 31, while WTI is on track for its highest close since August 1.
Oil prices got a boost from “geopolitical tensions and the worry that the US is going to strike (Iran) in the near future,” said Andrew Lipow, president of Lipow Oil Associates. “The market will continue to rally in anticipation of something happening.”
Iran planned a joint naval exercise with Russia on Thursday, Iran’s semi-official Fars news agency reported, days after the country shut down the Strait of Hormuz for a few hours for military drills. The Strait is a vital link for trade, with about 20percent of global oil supply passing through it. President Donald Trump said the US had to make a meaningful deal with Iran.
“Good talks are being had. It’s proven to be, over the years, not easy to make a meaningful deal with Iran. We have to make a meaningful deal, otherwise bad things happen,” Trump told the first meeting of his Board of Peace in Washington. The US has deployed warships near Iran, with US Vice President JD Vance saying Washington was considering whether it should continue diplomatic engagement with Tehran or pursue another option.
Iran issued a notice to airmen that it planned rocket launches in areas across the south of the country on Thursday, according to the US Federal Aviation Administration website. Some countries have asked their residents to leave Iran.
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