Oil set for second weekly rise as unsettled US-Iran war crimps supply

Oil set for second weekly rise as unsettled US-Iran war crimps supply.

Key points

• After climbing 2.4% in the previous session, brent crude futures rose 4 cents to $93.82 ‌a barrel by 0142 GMT.
• After climbing 2.3% in the prior session, US West Texas Intermediate crude futures slipped 6 cents to $86.78 a barrel.
• During the previous five days of gains, Brent gained more than 7% and WTI climbed more than 8%, reaching their highest since July 24.
• Since then, Tehran's ⁠blockade of the Strait of Hormuz and Iranian attacks on energy facilities throughout the Middle East have disrupted global oil and gas flows.
• Shipping traffic through the Strait of Hormuz ⁠on Wednesday was unchanged from the day before with nine vessel transiting the waterway, far below pre-war levels.

Oil set for second weekly rise as unsettled US-Iran war crimps supply. Brent crude futures rose 4 cents to $93.82 ‌a barrel.

Oil rates are set for a second weekly rise, driven by ongoing supply worries from the Middle East due to the stalemated US-Iran war and its impact on major producers. Recent gains in Brent and WTI crude futures. US-Iran war's impact on Middle East oil supply. Trump's economic threats and UAE's actions against Iran. Add BRecorder as a trusted source on Google.

SINGAPORE: Oil rates were little changed on Friday, but were on track for a second weekly rise as the stalemated US-Iran war continues to disrupt supply from the key Middle East producing region.

Rates have climbed on ⁠worries the inconclusive state of the US-Israeli war on Iran will mean the continued curtailment of supply from major oil producers such as Saudi Arabia, Iraq, the UAE and Kuwait.

Notably, the earlier peace accord between them expired this week with no effort by either side to restart negotiations and US President Donald Trump threatened economic retaliation against nations supporting Iran.

"Both sides are dug in but lacking the luxury of time to play the waiting game, against a backdrop of crude prices grinding unerringly higher, " IG analyst Tony Sycamore remarked ‌on ⁠Friday. US will impose 'toughest sanctions in history' on Iran: Bessent.

On Wednesday evening, Trump threatened "economic warfare and isolation on an unprecedented scale" against Tehran, warning of consequences for any country that provided "any type of lifeline to Iran".

This week, the United Arab Emirates suspended all financial and economic transactions with Iran until further notice, highlighting the fraught ties between the major ⁠Gulf Arab oil producer and Tehran.

Thousands of individuals have been killed in the Iran war. It began on February 28 when the US and Israel rolled out military strikes on Iran.

Prior to the Iran war, shipments equal to regarding one-fifth of global consumption moved through the waterway. Oil rates up 1%, near 3-week high as Middle East crisis escalates. Oil climbs on tanker attacks, US-Iran claims regarding Hormuz control.

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Five categories of manufacturers/importers: FBR to charge sales tax on basis of value of supply. PD to establish new SPV for privatisation of three Discos. PD could not bear excessive taxation: Malik. PM renews invitation to PTI for discussions. Aurangzeb shares latest debt position with Senate. July profit repatriation falls 11.5pc YoY.

Taken together, the developments around oil set for second weekly rise as unsettled US point to a situation that is still moving, and the coming days should bring more clarity.