Oil gains on renewed supply fears

Dawn reported that crude prices advanced on Wednesday, following a Houthi attack on Saudi Aramco's headquarters and Iranian remarks about a fresh approach to targeting vessels. By 1:25pm ET, Brent crude futures were 87 cents higher, a gain of 0.82 per cent, at $106.56 per barrel. US West Texas Intermediate rose $1.46, or 1.55pc, to $95.60, reaching a three-week peak.

Phil Flynn of the Price Futures Group linked the gains to ship attacks in the Strait of Hormuz and to hostilities involving Saudi Arabia and the Houthis. He said traders were acting on apprehension and described the session as fear-driven.

Iranian officials did not give details of the new approach, although one said Iran had begun using different offensive methods about 10 days earlier. Separately, data cited in the report showed Gulf oil flows excluding Iran climbed in September to more than 81pc of prewar levels, led by Saudi exports. Iranian exports dropped to zero because of a US blockade.