Oil hits 6-week high amid renewed Middle East tensions

Oil prices hovered near their highest levels in six weeks, as new U.S. strikes on Iran exacerbated concerns about supply disruptions in the Middle East.

Brent crude futures rose $1.76, or 1.8%, to $97.39 per barrel, erasing earlier losses, while U.S. West Texas Intermediate (WTI) crude futures climbed $1.91, or 2.1%, to $92.92. Both contracts were on track to post gains for a fourth consecutive session, having reached their highest levels in six weeks earlier in the session.

Preliminary shipping data showed that six bulk carrier vessels transited the Strait of Hormuz on Wednesday, down from 11 the previous day, a figure below the 10-day average of approximately 13 vessels.

Giovanni Staunovo, energy analyst at UBS, said, “The oil market continues to suffer from a shortage, as global oil inventories are declining, pushing prices higher. Prices are also likely to be supported by ongoing tensions in the Middle East.”

Two Iraqi energy sector officials said on Wednesday that Iraq increased its oil exports to around 2.34 million barrels per day in August, up from about 1.35 million barrels per day in July, with September exports also expected to rise. This was encouraged by steep discounts and Iran’s approval of Iraqi oil tankers to pass through the Strait of Hormuz, which attracted buyers.