Oil hits more than three-week high

Oil prices climbed to their highest level since July 24 on Thursday, with Brent up 2.1 percent at USD 93.56 a barrel by 1:49 p.m. EDT. The move followed President Donald Trump's warning of retaliation against nations that support Iran, amid a conflict that has held up millions of barrels of regional crude. West Texas Intermediate for September gained 2.5 percent to USD 88.01, while the October contract rose 2.7 percent to USD 86.68, according to Business Recorder.

On Wednesday Trump threatened economic pressure and isolation of unprecedented size against Tehran, warning that any country offering Iran a lifeline could face consequences. Treasury Secretary Scott Bessent plans a press conference on Monday. The conflict, now close to six months old, began when the United States and Israel launched strikes on Iran, and Tehran has since blockaded the Strait of Hormuz. Iranian strikes on regional energy sites have also cut into oil and gas supplies bound for distant markets.

UBS analyst Giovanni Staunovo warned that regional tensions are still elevated and could cause more supply shortfalls, with lower Middle Eastern exports once again squeezing the market. Separately, the UAE halted all financial and economic dealings with Iran earlier this week until further notice. The Energy Information Administration reported that US distillate stocks fell for a third consecutive week, while crude inventories unexpectedly climbed by 4.4 million barrels.