Oil gains on Middle East supply concerns amid impasse in US-Iran war

Oil gains on Middle East supply reservations against the backdrop of impasse in US-Iran war.

Key points

• While US West Texas Intermediate crude futures for September continued 17 cents to $86 a barrel, brent crude futures for October delivery rose 26 cents, or 0.28%, to $91.87 a barrel by 0439 GMT.
• Nevertheless, crude inventories rose by 4.4 million barrels in the week concluded on August 14, compared with estimates for a 600, 000-barrel draw.
• Brent crude futures for October delivery rose 26 cents, or 0.28%, to $91.87 a barrel.
• Both Brent and WTI benchmarks gained for a fifth straight session on Thursday, having settled on Wednesday at their highest since July 24.
• On Tuesday, US President Donald Trump remarked no negotiations were taking place with Iran and that the Strait of Hormuz was open.

Oil rates steadied as Middle East tensions, particularly concerning the US-Iran situation and Strait of Hormuz shipping security, continue to influence market dynamics. Impact of US-Iran tensions on oil rates. Shipping security in the Strait of Hormuz. UAE's suspension of transactions with Iran. Add BRecorder as a trusted source on Google.

TOKYO/SINGAPORE: Oil rates climbed on Thursday on worries the impasse in the US-Israeli war against Iran will continue to disrupt supply from the key Middle Eastern producing region and tighten global supplies.

While US West Texas Intermediate crude futures for September continued 17 cents to $86 a barrel, brent crude futures for October delivery rose 26 cents, or 0.28%, to $91.87 a barrel by 0439 GMT. The more-active October WTI contract gained 12 cents, or 0.13%, to $89.91.

Both Brent and WTI benchmarks gained for a fifth straight session on Thursday, having settled on Wednesday at their highest since July 24. The September WTI contract expires afterwards on Thursday.

"Oil prices remained elevated as the market is supported by sporadic attacks in the Middle East but lacks fresh momentum without a major escalation, " remarked Hiroyuki Kikukawa, chief strategist of Nissan Securities Investment, a unit of Nissan Securities. Saudi Arabia resumes oil loadings, sales from inside Strait of Hormuz.

"The market is likely to maintain a gradual upward trend given uncertainty over peace talks and tensions involving the United Arab Emirates, Oman and Iran, " he continued.

Meanwhile, the UAE's decision to suspend all financial and economic transactions with Iran until further notice has refocused the spotlight on fraught ties between the major Gulf Arab oil producer and Iran.

On Tuesday, US President Donald Trump remarked no negotiations were taking place with Iran and that the Strait of Hormuz was open. Iran, nevertheless, stated the waterway remained shut.

Shipping traffic through the Strait of Hormuz on Wednesday was unchanged from the day before as discussions to end the war between the United States and Iran remained deadlocked, according to the latest shipping data.

Prior to the war that began on Feb. 28, shipments equal to regarding one-fifth of global consumption moved through the waterway, with current flows far below pre-war levels.

Meanwhile, the war has additionally impacted the supply of refined fuels and drawn down inventories with less crude available to refiners. Houthis say they don't seek to close key Bab al-Mandeb Strait.

US stockpiles of distillate fuel, including diesel and heating oil, fell last week for a third week, the Energy Information Administration remarked on Wednesday.

Nevertheless, crude inventories rose by 4.4 million barrels in the week concluded on August 14, compared with estimates for a 600, 000-barrel draw. Oil climbs on tanker attacks, US-Iran claims regarding Hormuz control.

Oil rises on Iran war stalemate; near-term potential for further gains seen limited. Oil rises as US-Iran peace hopes fade. PSX: Buying interest returns, KSE-100 up 900 points. Gold hovers near early-June high on lower bond yields. Trump warns of economic consequences for any country that supports Iran.

Diesel gets massive Rs32.63 cut as petrol cost rises Rs2.97 per litre. Excluding IMF loan: Total debt reaches Rs81.9trn by 11MFY26: Aurangzeb. Pakistan, South Korea move closer to CEPA. Govt challenges SC verdict in IK treatment case. KE seeks SIFC backing to resolve ICP problem. China Evergrande founder sentenced to life in prison. National fisheries policy being prepared to unlock $10bn potential: minister.

In short, oil gains on Middle East supply concerns amid impasse in US is the central thread here, and readers can expect follow-up reporting as the picture becomes clearer.