Oil hits 3-week high on Middle East supply concerns amid war impasse

Oil prices rose to three-week peaks on Thursday, according to The Express Tribune, as traders worried that the stalemate in the US-Israeli conflict with Iran could keep crude supplies from the Middle East constrained. Brent crude for October delivery gained $2.44, or 2.7 per cent, to $94.06 a barrel by 0958 GMT. US West Texas Intermediate futures for September climbed $1.84 to $87.67 a barrel, while the more active October WTI contract advanced $2.41, or 2.9 per cent, to $86.80.

Both benchmarks reached their highest levels since July 24 and have risen for five consecutive sessions. UBS analyst Giovanni Staunovo said tensions could bring more supply disruptions, while Hiroyuki Kikukawa of Nissan Securities Investment expected prices to keep edging higher. The UAE has put a stop to financial and economic dealings with Iran, an open-ended move that has sharpened attention on strained relations between the Gulf producer and Tehran.

Trump stated on Tuesday that negotiations were not under way and described the Strait of Hormuz as open, though Iran maintained the channel was still closed. Shipping through the strait was unchanged on Wednesday, and flows remain far below pre-war levels. US distillate stocks dropped for a third straight week, while crude inventories unexpectedly climbed by 4.4 million barrels, the Energy Information Administration said.