Oil prices hit fresh 6-week highs on renewed Middle East tensions

According to The Express Tribune, oil prices stayed near six-week peaks on Thursday after new American strikes on Iran and fresh Israeli warnings against Tehran. Brent crude climbed $1.76, or 1.8 per cent, reaching $97.39 a barrel at 3:25pm PKT, reversing earlier losses, while US West Texas Intermediate gained $1.91, or 2.1 per cent, to $92.92. Both contracts also touched six-week peaks earlier and were set for a fourth day of gains.

Iran's health minister put the toll at eight dead and 108 hurt after Tuesday night's American raids, while the Iranian Red Crescent reported four dead and 67 injured at a wedding. These were the heaviest exchanges between Washington and Tehran since July, and the conflict is now in its seventh month. Israeli Defence Minister Israel Katz repeated a warning that Israel would "cripple" Iran's armed forces and civilian structures, energy facilities included, if Tehran launched attacks on it.

Only six commodity ships crossed the Strait of Hormuz on Wednesday, down from 11 the day before, preliminary shipping figures showed. Iran widened its list of ships it deems non-compliant, warning they could be fined, seized or held. Iraq lifted August oil exports to roughly 2.34 million barrels daily, up from about 1.35 million in July, according to two Iraqi energy officials. UBS energy analyst Giovanni Staunovo said the oil market remains tight as global inventories keep falling.