SINGAPORE, Sept 4 (Reuters) – Oil prices rose on Friday, heading for their steepest weekly gain since mid-July, as rising tension and renewed U.S.-Iran hostilities heightened concerns over Middle East supply risks.
Brent crude futures rose 54 cents, or 0.6%, to $96.06 a barrel by 0100 GMT, while U.S. West Texas Intermediate crude futures climbed 80 cents, or 0.9%, to $92.10.
On a weekly basis, Brent rose 7.6% and WTI was 10.4% 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 in late 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.
ANZ analysts raised their Brent crude forecast on Friday to $95 a barrel in the short term, with upside risk if the Middle East conflict intensifies.
“The market is entering a delicate adaptation phase. Elevated inventories helped absorb the initial supply crisis, but the challenge is now to keep the market balanced as those buffers diminish,” the analysts said.
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.
(Reporting by Sudarshan VaradhanEditing by Shri Navaratnam)
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