Oil Prices Reach Six-Week Highs After U.S.-Iran Strikes and Israeli Threats
Market Reactions and Geopolitical Tensions Impacting Oil Prices
By Shadia Nasralla
Oil Price Movements and Market Data
LONDON, Sept 3 (Reuters) - Oil prices hit fresh six-week highs on Thursday after new U.S. strikes on Iran and renewed Israeli threats against Tehran heightened concerns about disruptions to Middle East supplies.
Brent crude futures were up $1.66, or 1.7%, at $97.29 a barrel by 1200 GMT, erasing earlier losses, while U.S. West Texas Intermediate crude futures rose $2.03, or 2.2%, to $93.04. Both contracts were heading for their fourth day of gains and hit six-week highs earlier in the session.
Details of U.S.-Iran Strikes
Casualties and Immediate Impact
Iran's health minister said 18 people were killed and 108 wounded in Tuesday night's U.S. 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 U.S. strikes, the semi-official Tasnim news agency reported.
Escalation in the Region
The latest attacks marked the most substantial exchange of fire between the U.S. and Iran since July, with the war now in its seventh month.
Israeli Threats and Market Analysis
Israeli Warnings Against Iran
Israeli Defence Minister Israel Katz renewed warnings that Israel would "cripple" Iran's military and civilian infrastructure, including energy facilities, if Tehran launched attacks against it.
Analyst Insights
Saxo Bank analyst Ole Hansen said Katz's comments had helped fuel the latest jump in oil prices.
Shipping and Supply Chain Disruptions
Strait of Hormuz Shipping Data
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, preliminary shipping data showed on Thursday.
Market Tightness and Middle East Tensions
"The oil market remains tight, with oil inventories still declining globally translating in higher prices. Some support might have also come from ongoing tensions in the Middle East," said UBS energy analyst Giovanni Staunovo.
Iran's Response to Shipping
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.
Oil Export Developments in Iraq
Elsewhere, 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 to pass through Hormuz encouraged buyers.
Broader Economic Context
In broader markets, traders have increased bets on a Federal Reserve interest rate hike this month. [MKTS/GLOB]
(Additional reporting by Sam Li and Colleen Howe; Editing by Sharon Singleton, Jacqueline Wong and Susan Fenton)
