Oil climbed for a third day as the US mulled sending another aircraft carrier group to the Middle East, potentially escalating the war with Iran and threatening to hamper a recovery in energy flows from the region.
West Texas Intermediate rose to around $93 a barrel after adding almost 3% in the previous session, while Brent settled around above $102 on Thursday. The Pentagon may deploy an additional aircraft carrier and 10,000 sailors and Marines to the Persian Gulf, according to a US official, giving more options should President Donald Trump choose to increase attacks on Iran.
Oil futures have swung this week as traders weighed the improving Middle East flows against the risk of escalation. Brent remains almost 70% higher this year as the US-Iran war stretches into an eighth month, with little progress toward a diplomatic resolution.
“The oil market is highly susceptible to another spike in prices, with inventories at low levels following six months of drawdowns,” ANZ Group Holdings Ltd. analysts Brian Martin and Daniel Hynes said in a note. “Investors are increasingly concerned that Iran will respond to the military buildup with attacks on US assets and energy infrastructure in the region.”
Adding to concerns, UK Maritime Trade Operations said it received a report of a tanker being hit by an unknown projectile while transiting the Strait of Hormuz. The extent of the damage and any environmental impact were unclear, it said.
The renewed tensions come just as concerns over Middle East supply had begun to ease. Wall Street analysts said earlier this week that flows from the region were nearing pre-war levels, although fuel supplies have yet to recover to the same extent.
Meanwhile, Iran appeared to have loaded no crude oil onto tankers in September, the latest sign that the US naval blockade is cutting off the Islamic Republic’s access to energy markets.
To ease tight fuel supplies, the Trump administration is pressing the European Union to release diesel stockpiles and help avert US export curbs, according to people familiar with the matter. Treasury Secretary Scott Bessent urged European partners to help ease the global shortage.
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With assistance from Lorelei Smillie.
This article was generated from an automated news agency feed without modifications to text.
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