Oil prices hit fresh six-week highs on Thursday after new U.S. strikes on Iran and renewed Israeli threats against Tehran heightened concerns about disruptions to Middle East supplies.
Brent crude futures were up $1.66, or 1.7%, at $97.29 a barrel by 1200 GMT, erasing earlier losses, while U.S. West Texas Intermediate crude futures rose $2.03, or 2.2%, to $93.04. Both contracts were heading for their fourth day of gains and hit six-week highs earlier in the session.
Iran’s health minister said 18 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.
Three Iranian Army pilots were killed in the U.S. strikes, the semi-official Tasnim news agency reported.
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.
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 this month.
Source: Khaleej Times