LONDON, Sept 3 — Oil prices hovered near six-week highs today after fresh US strikes on Iran and renewed Israeli threats against Tehran heightened concerns about disruptions to West Asian supplies.
Brent crude futures were up US$1.76, or 1.8 per cent, at US$97.39 a barrel by 1025 GMT, erasing earlier losses, while US West Texas Intermediate crude futures rose US$1.91, or 2.1 per cent, to US$92.92. Both contracts were heading for their fourth day of gains and hit six-week highs earlier in the session.
Iran’s health minister said 18 people were killed and 108 wounded in Tuesday night’s US strikes across Iran. The Iranian Red Crescent said four people were killed and 67 wounded at a wedding ceremony near the coast of the Strait of Hormuz.
The latest attacks marked the most substantial exchange of fire between the US and Iran since July, with the war now in its seventh month.
Israeli Defence Minister Israel Katz renewed warnings that Tel Aviv would “cripple” Iran’s military and civilian infrastructure, including energy facilities, if Tehran launched attacks against it.
Saxo Bank analyst Ole Hansen said Katz’s comments had helped fuel the latest jump in oil prices.
Six commodity vessels transited the Strait of Hormuz yesterday, down from 11 a day earlier and well below the 10-day average of around 13, preliminary shipping data showed today.
“The oil market remains tight, with oil inventories still declining globally, translating in(to) higher prices. Some support might have also come from ongoing tensions in (West Asia),” said UBS energy analyst Giovanni Staunovo.
Meanwhile, Iran added more ships to the list of vessels it deems non-compliant and subject to fines, confiscation or detention if they try to sail through the strait.
Elsewhere, Iraq increased its oil exports to around 2.34 million barrels per day (bpd) in August from about 1.35 million bpd in July, two Iraqi energy officials said yesterday, with September exports also expected to increase as heavy discounts and Iranian approvals for Iraqi tankers to pass through Hormuz encouraged buyers.
In broader markets, traders have increased bets on a US Federal Reserve interest rate hike this month.
