Oil set for steepest weekly gain since mid-July over intensifying US-Iran tensions
SEATTLE (Oil Monster): Oil prices rose on Friday and are on track for the steepest weekly gain since mid-July as rising tensions and renewed U.S.-Iran hostilities heightened concerns over Middle East supply risks.
Brent crude futures rose 15 cents, or 0.2%, to $95.67 a barrel at 0100 GMT, while U.S. West Texas Intermediate crude futures were up 26 cents, or 0.3%, at $91.56.
On a weekly basis, Brent rose 7.1% and WTI was 9.8% higher, set for the highest gains since the week ended July 20.
U.S. attacks this week that killed and wounded dozens, including Iranian civilians, marked the fiercest clashes between the two countries since July.
The war, which began with U.S.-Israeli strikes at the end of February, is now in its seventh month.
Israeli Defence Minister Israel Katz renewed warnings that Israel would "cripple" Iran's military and civilian infrastructure, including energy facilities.
U.S. Vice President JD Vance told reporters on Thursday that Washington does not plan to hold talks with Iran unless Tehran stops attacking commercial shipping in the Strait of Hormuz.
Capping oil's advance, however, Russian President Vladimir Putin said there remained a path to a deal to end the war in Ukraine, adding that both the U.S. and China were prepared to support a peace settlement.
Meanwhile, Iran expanded its list of vessels it deems non-compliant and subject to fines, confiscation or detention if they attempt to transit the strait. Iraqi ships remain among the few vessels Tehran has cleared to pass through Hormuz.
Iraq increased its oil exports to around 2.34 million barrels per day in August from about 1.35 million bpd in July, two Iraqi energy officials said on Wednesday, with September exports also expected to increase as heavy discounts and Iranian approvals for Iraqi tankers encouraged buyers.
Courtesy: www.reuters.com