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

Business Recorder reported that Brent crude futures rose $1.76, or 1.8 per cent, to $97.39 a barrel on Thursday, erasing earlier declines. West Texas Intermediate gained $1.91 to $92.92, and both contracts touched six-week peaks during the session. The advance followed fresh United States strikes on Iran and renewed threats from Israel, which heightened fears of supply disruption in the Middle East.

Iran's health minister put the death toll from Tuesday night's U.S. strikes at eight, with 108 people wounded, while the Iranian Red Crescent reported four deaths and 67 injuries at a wedding by the Hormuz shoreline. Israel Katz, Israel's defence minister, repeated a threat to badly damage Iran's military and civilian sites, energy facilities among them, if Tehran launched strikes. Saxo Bank's Ole Hansen argued that the minister's remarks had pushed prices higher.

On Wednesday, just six commodity vessels crossed Hormuz, compared with 11 the day before and a 10-day mean of roughly 13. Iran further expanded its list of vessels it considers non-compliant, which risk fines, seizure or detention if they attempt the passage. Iraqi shipments reached about 2.34 million barrels daily in August, up from 1.35 million in July, and officials expect September volumes to grow. Traders have also placed larger wagers on a Federal Reserve rate increase before month end.