Oil gains on Middle East supply concerns amid impasse in US-Iran war

Business Recorder reported that crude prices moved higher on Thursday, as traders worried that the stalemate in the US-Israeli conflict with Iran could keep Middle Eastern shipments constrained and tighten worldwide availability. Brent futures for October delivery were up 26 cents, a gain of 0.28 per cent, at $91.87 a barrel by 0439 GMT, while the US West Texas Intermediate contract for September rose 17 cents to $86 a barrel. Both benchmarks have now advanced for five consecutive sessions after settling on Wednesday at their loftiest level since July 24.

An analyst at Nissan Securities Investment said prices stay high because sporadic attacks in the region offer support, though no major escalation has added fresh momentum. The UAE's decision to halt all financial and economic dealings with Iran until further notice has put the strained ties between the Gulf producer and Tehran back in focus. Shipping through the Strait of Hormuz was unchanged on Wednesday, with flows far below pre-war levels, while Iran maintained the waterway was blocked despite Trump saying on Tuesday it was open.

The conflict has also cut refined fuel supplies and drawn down inventories, leaving refiners with less crude. Even so, US crude stocks climbed by 4.4 million barrels in the week ended August 14, against an estimate for a 600,000-barrel draw, while distillate stocks including diesel and heating oil fell for a third week, according to the Energy Information Administration.