By Adedapo Adesanya
Oil market rose on Thursday after United States strikes on Iran and renewed Israel threats against Iran revived concerns about disruption to Middle East supplies.
Brent crude futures were up 15 cents or 0.16 per cent to $95.78 a barrel, while US West Texas Intermediate (WTI) crude futures gained 63 cents or 0.69 per cent to trade at $91.64 per barrel.
The latest attacks by the US on Iran marked the most substantial exchange of fire between the two nations since July, with the war now in its seventh month.
Reuters reported that Iran’s health minister said 18 people were killed and 108 wounded in Tuesday night’s American 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. Three Iranian Army pilots were killed in the US strikes.
Israel’s Defence Minister Israel Katz renewed warnings that Israel would “cripple” Iran’s military and civilian infrastructure, including energy facilities, if Iran launched attacks against it.
Russian President Vladimir Putin indicated openness to peace negotiations with Ukraine on their war, which began in February 2022.
This could help ease concerns about Russian fuel supply disruptions if attacks on refineries decline and production normalizes, a factor pressuring prices on Thursday.
President Putin, speaking at an economic forum in Russia’s Far East, said on Thursday there was a chance of reaching an agreement to end the war in Ukraine. He said a number of countries, including the US and China, were ready to support a peace settlement.
Six commodity vessels transited the Strait of Hormuz on Wednesday, down from 11 a day earlier and well below the 10-day average of around 13.
Meanwhile, Iran added 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.
Iraqi vessels are among those Iran has allowed to pass through Hormuz.
Iraq increased its oil exports to around 2.34 million barrels per day in August from about 1.35 million barrels per day in July. The producer expects September exports to increase as heavy discounts and Iranian approvals for Iraqi tankers encouraged buyers.
Higher oil prices and the implications for inflation led to increased bets on a Federal Reserve interest rate hike this month.
The Organisation of the Petroleum Exporting Countries and its allies (OPEC+) is likely to leave its oil production policy unchanged for October when seven of its core members meet on Sunday, September 6.
