Oil prices rise 1.3% to three-week highs as Iran war threatens supply

Oil prices climbed to three-week highs on Thursday as concerns over the Iran war and disruptions in the Middle East supported crude markets. Brent crude futures for October delivery rose $1.20, or 1.3%, to $92.82 a barrel by 0813 GMT, while September U.S. West Texas Intermediate futures gained 92 cents to $86.75. The more-active October WTI contract rose $1.13, or 1.3%, to $85.52. Both benchmarks reached their highest levels since late July, extending gains for a fifth straight session, while the September WTI contract was due to expire later Thursday. Analysts said uncertainty over peace talks, attacks in the region and tensions involving the United Arab Emirates, Oman and Iran could keep prices on a gradual upward trend. The UAE suspended all financial and economic transactions with Iran until further notice. Shipping through the Strait of Hormuz was unchanged on Wednesday but remained far below pre-war levels; before the conflict began with U.S. and Israeli strikes on Iran on February 28, the waterway carried shipments equivalent to about one-fifth of global consumption. The war has also reduced refined-fuel supply and inventories. U.S. distillate stockpiles, including diesel and heating oil, fell for a third consecutive week, while crude inventories unexpectedly increased by 4.4 million barrels, the Energy Information Administration said.

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