Oil prices extend gains amid Middle East tensions

Brent crude futures for October delivery rose 26 cents, or 0.28%, to $91.87 a barrel by 0439 GMT.

Key points

• President Donald Trump remarked Tuesday that no negotiations were taking place with Iran and that the Strait of Hormuz was open.
• "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 remarked.
• Both benchmarks were heading for a fifth consecutive session of gains after settling Wednesday at their highest levels since July 24.
• Crude inventories moved in the opposite direction, rising by 4.4 million barrels in the week concluded Aug.

Brent crude futures for October delivery rose 26 cents, or 0.28%, to $91.87 a barrel by 0439 GMT. U.S. While the more-active October contract rose 12 cents, or 0.13%, to $89.91, west Texas Intermediate crude for September gained 17 cents to $86.

Both benchmarks were heading for a fifth consecutive session of gains after settling Wednesday at their highest levels since July 24. The September WTI contract expires 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 at Nissan Securities Investment.

Oil rates surge as tanker attack adds to Strait of Hormuz risks.

For context, the latest market pressure followed the UAE's decision to suspend all financial and economic transactions with Iran until further notice, adding to reservations over regional stability and energy flows.

In practice, the Strait of Hormuz remains at the center of those reservations. Before the conflict began Feb. 28, regarding one-fifth of global oil consumption moved through the strategic waterway. Shipping traffic has since dropped sharply as operators remain cautious regarding using the route.

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

For context, the conflict has additionally disrupted refined fuel supplies. U.S. Distillate inventories. It include diesel and heating oil, fell for a third consecutive week, according to the Energy Information Administration.

Crude inventories moved in the opposite direction, rising by 4.4 million barrels in the week concluded Aug. 14, compared with analysts' expectations for a 600, 000-barrel decline.

Despite the growth in crude stocks, geopolitical uncertainty continued to backing rates. Traders are now watching diplomatic efforts and developments around the Strait of Hormuz for signs of whether supply disruptions will worsen or ease.

Taken together, the developments around oil prices extend gains amid Middle East tensions point to a situation that is still moving, and the coming days should bring more clarity.