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

According to Business Recorder, oil rose to a three-week peak on Thursday as traders worried the Iran conflict would keep choking supply from the Middle East. October Brent futures climbed $2.80, a 3.1% gain, to $94.42 per barrel by 1204 GMT. West Texas Intermediate also advanced, with the September contract up $2.84 at $88.67.

Both benchmarks reached their highest levels since July 24 and have now risen for five consecutive sessions. UBS analyst Giovanni Staunovo said tensions in the region leave room for more disruptions, adding that reduced exports from the region were again squeezing the market. The UAE's move to halt all financial and economic dealings with Iran has also drawn attention to strained ties between the Gulf producer and Iran.

Kikukawa of Nissan Securities Investment said prices remain elevated because sporadic attacks keep markets supported, yet they lack fresh momentum without a major escalation. US inventories of diesel and heating oil fell for a third straight week, the Energy Information Administration said, although crude stocks unexpectedly increased by 4.4 million barrels.