Oil prices settle up about 3pc

Business Recorder reported that Brent crude futures closed 3.4 per cent higher at USD106.60 a barrel on Thursday, a rise of USD3.52, as renewed supply worries followed a Houthi missile strike on Saudi Arabia. West Texas Intermediate settled at USD94.61, up 2.7 per cent. Both contracts had been up about 5 per cent at session highs before easing on reports of talks about reopening the Strait of Hormuz.

Saudi Arabia said it had intercepted six ballistic missiles launched from Yemen by Iran-backed Houthi forces, which targeted Taif and the Yanbu area on the Red Sea. Separately, several nearby states including the UAE and Oman have barred Iranian airlines from flying there following new US sanctions. Iran has threatened to make airports in countries that enforce the flight ban unusable.

Diesel supplies are tight after Moscow banned fuel exports. A Politico report said Washington was readying a 90-day diesel export restriction ahead of November's midterm elections, a claim Energy Secretary Chris Wright has disputed. Meanwhile, negotiators in New York are reportedly exploring a phased deal under which Tehran would reopen the Strait of Hormuz and Washington would lift its blockade, though neither side wants to give up leverage.