Oil hits 3-week high on Middle East supply concerns amid war impasse

Oil hits 3-week high on Middle East supply reservations against the backdrop of war impasse.

Key points

• While U.S, brent crude futures for October delivery rose $2.80, or 3.1%, to $94.42 a barrel by 1204 GMT.
• "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.
• President Donald Trump remarked no negotiations were taking place with Iran and that the Strait of Hormuz was open.
• Diesel gets massive Rs32.63 cut as petrol cost rises Rs2.97 per litre.
• Both Brent and WTI benchmarks hit their highest since July 24 and gained for a fifth straight session.

Oil hits 3-week high on Middle East supply reservations against the backdrop of war impasse. Brent crude futures for October delivery rose $2.80, or 3.1%, to $94.42 a barrel.

Oil rates surged to three-week highs against the backdrop of escalating Middle East tensions, driven by reservations over potential supply disruptions from the region, particularly involving Iran and the Strait of Hormuz. Add BRecorder as a trusted source on Google.

LONDON: Oil rates climbed to three-week highs on Thursday, driven by worries that the impasse in the Iran war will continue to disrupt supply from the key Middle Eastern producing region.

While U.S, brent crude futures for October delivery rose $2.80, or 3.1%, to $94.42 a barrel by 1204 GMT. West Texas Intermediate crude futures for September continued $2.84 to $88.67 a barrel. The more-active October WTI contract was up $2.87, or 3.4%, to $87.26.

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

"Tensions in the Middle East remain high, leaving room for further supply disruptions, " remarked UBS analyst Giovanni Staunovo. "Lower oil exports from the Middle East are once again tightening the oil market."

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. Saudi Arabia resumes oil loadings, sales from inside Strait of Hormuz.

"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.

On Tuesday, U.S. 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.

Trump on Wednesday cautioned of economic consequences against any country that provided "any type of lifeline to Iran". Houthis say they don't seek to close key Bab al-Mandeb Strait.

Shipping traffic through the strait on Wednesday was unchanged from the day before as discussions to end the conflict remained deadlocked, according to the latest shipping data.

Prior to the war that began with U.S. And Israeli strikes on Iran on February 28, shipments equal to regarding one-fifth of global consumption moved through the waterway. Current flows are 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.

U.S. 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 unexpectedly rose by 4.4 million barrels. 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. PM Shehbaz invites opposition to dialogue 'to strengthen economy, democracy'. Trump warns of economic consequences for any country that supports Iran. Pakistan expects up to $100mn under first DPR programme. Pakistan rupee records gain against US dollar. PSX: Buying interest returns, KSE-100 up 900 points. Pakistan, Syria reaffirm brotherly ties, discuss regional developments. Gold per tola gains Rs13, 700 in Pakistan. Federal cabinet approves Defence Forces Act 2026 Amendments. Review plea against Imran Khan's Shifa transfer order 'returned with objections'.

In short, oil hits 3-week high on Middle East supply concerns amid war impasse is the central thread here, and readers can expect follow-up reporting as the picture becomes clearer.