Oil prices up 1%, near 3-week high as Middle East crisis escalates

Oil rates up 1%, near 3-week high as Middle East crisis escalates.

Key points

• Murree Brewery, Systems Limited, Sazgar create it to Forbes 'Asia's Best Under A Billion' list.
• In the U.S., crude inventories rose by 4.4 million barrels to 428.8 million barrels last week, the Energy Information Administration remarked, easing worries regarding tight supplies.
• Brent crude futures were up 87 cents, or almost 1%, at $91.89 at 11 a.m.
• The session high for Brent was its highest since July 30, and WTI reached its highest since July 31.
• President Donald Trump remarked no negotiations were taking place with Iran and that the Strait of Hormuz was open.

Oil rates up 1%, near 3-week high as Middle East crisis escalates. Brent crude futures were up 87 cents, or almost 1%, at $91.89.

Oil rates surged to a three-week high due to escalating Middle East tensions, particularly after the UAE cut ties with Iran and worries over the Strait of Hormuz. Escalating Middle East tensions and UAE's financial cut-off from Iran.

Notably, the critical status of the Strait of Hormuz for global oil supplies. Market expectations for oil rates to reach three-digit levels. Add BRecorder as a trusted source on Google.

As investors worried that tensions in the Middle East could escalate after the United Arab Emirates decided to suspend all financial and economic transactions with Iran, HOUSTON: Oil rates rose 1% on Wednesday and were trading near a three-week high hit during the session.

As most ship owners avoided the waterway since of a lack of clear signaling on its reopening from a blockade during the Iran war, shipping through the Strait of Hormuz additionally remained slow, data demonstrated.

Brent crude futures were up 87 cents, or almost 1%, at $91.89 at 11 a.m. ET (1600 GMT). U.S. West Texas Intermediate crude futures were $1.17, or 1.4% higher at $86.11 a barrel.

Notably, the session high for Brent was its highest since July 30, and WTI reached its highest since July 31.

"Crude futures remain supported by the geopolitical tensions that remain in the Middle East, now with the UAE stating they have cut off all financial ties to Iran due to the latest missile attacks, " remarked Dennis Kissler, senior vice president of trading at BOK Financial.

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.

In practice, a temporary ceasefire agreement expired on Monday and a senior Iranian official informed Reuters his country was moving to a "fully offensive" military posture due to the diplomatic stalemate. There were no reports of strikes by either side on Tuesday.

Iran is eyeing military targets in Europe if Trump escalates war, the Financial Times documented, citing sources. Houthis say they don't seek to close key Bab al-Mandeb Strait.

Meanwhile, the oil market remains focused on the Strait of Hormuz, through which regarding one-fifth of global oil and liquefied natural gas supplies passed before the U.S.-Israeli war on Iran began at the end of February.

Brent's move above $91 a barrel suggests traders are pricing in a higher risk premium, with rates potentially returning to three-digit levels, stated Ahmad Assiri, research strategist at brokerage Pepperstone.

As of disruptions at the Black Sea port of Novorossiysk, meanwhile, oil shipments from Russia's western ports have fallen to regarding 2.3 million barrels per day in the first half of August, 15% below the initial loading plan.

Globally, refiners have been snapping up crude barrels due to high margins and as Ukraine's attacks on Russia's refining sector kept global fuel supplies tight, BOK's Kissler observed.

U.S. Refinery utilization rates rose by 1 percentage point in the week to 97.2%, EIA data indicated. Oil climbs on tanker attacks, US-Iran claims regarding Hormuz control.

US, Iran agree to extend ceasefire as Pakistan steps up mediation: report.

Oil rises on Iran war stalemate; near-term potential for further gains seen limited. Pakistan seeks $10bn US Exchange Stabilisation Backing Facility, Aurangzeb confirms.

Govt announces up to Rs32 reduction in diesel cost after refinery negotiations.

PM Shebaz asks petroleum minister to travel to Karachi over fuel rates. Bilawal urges opposition to return to parliamentary committees. PSX: KSE-100 settles 1, 100 points lower against the backdrop of late selling. Govt launches Retailer Scheme App to bring millions into tax net.

Murree Brewery, Systems Limited, Sazgar create it to Forbes 'Asia's Best Under A Billion' list. Pakistan rupee records gain against US dollar. Gold cost per tola drops Rs3, 700 in Pakistan. Nishat Mills to exit dairy venture with Turkish partner Sutas.

For now, oil prices up 1%, near 3-week high as Middle East crisis escalates remains the part of the story worth watching, and further updates are likely as more details are confirmed.