Oil prices hit fresh 6-week highs on renewed Middle East tensions
- Brent crude futures were up $1.76, or 1.8%, at $97.39 a barrel
Oil prices are near six-week highs due to escalating US-Iran tensions and renewed Israeli threats, fueling concerns about Middle East supply disruptions and a tight global market.
- Escalating US-Iran conflict and Israeli threats.
- Impact of Middle East tensions on oil prices.
- Shipping disruptions in the Strait of Hormuz.
LONDON: Oil prices hovered near six-week highs on Thursday after fresh U.S. strikes on Iran and renewed Israeli threats against Tehran heightened concerns about disruptions to Middle East supplies.
Brent crude futures were up $1.76, or 1.8%, at $97.39 a barrel by 1025 GMT, erasing earlier losses, while U.S. West Texas Intermediate crude futures rose $1.91, or 2.1%, to $92.92. Both contracts were heading for their fourth day of gains and hit six-week highs earlier in the session.
Iran’s health minister said eight people were killed and 108 wounded in Tuesday night’s U.S. strikes across Iran. The Iranian Red Crescent said four people were killed and 67 wounded at a wedding ceremony near the coast of the Strait of Hormuz.
The latest attacks marked the most substantial exchange of fire between the U.S. and Iran since July, with the war now in its seventh month.
Israeli Defence Minister Israel Katz renewed warnings that Israel would “cripple” Iran’s military and civilian infrastructure, including energy facilities, if Tehran launched attacks against it.
Saxo Bank analyst Ole Hansen said Katz’s comments had helped fuel the latest jump in oil prices.
US pounds Iran, Tehran strikes back at bases
Six commodity vessels transited the Strait of Hormuz on Wednesday, down from 11 a day earlier and well below the 10-day average of around 13, preliminary shipping data showed on Thursday.
“The oil market remains tight, with oil inventories still declining globally translating in higher prices. Some support might have also come from ongoing tensions in the Middle East,” said UBS energy analyst Giovanni Staunovo.
Meanwhile, Iran added more ships to the list of vessels it deems non-compliant and subject to fines, confiscation or detention if they try to sail through the strait.
Elsewhere, Iraq increased its oil exports to around 2.34 million barrels per day in August from about 1.35 million bpd in July, two Iraqi energy officials said on Wednesday, with September exports also expected to increase as heavy discounts and Iranian approvals for Iraqi tankers to pass through Hormuz encouraged buyers.
In broader markets, traders have increased bets on a Federal Reserve interest rate hike later this month.
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