Oil Hits More Than Three-Week High as Trump Threatens Iran-Related Retaliation

• Oil prices rose to more ‌than a three-week high on Thursday after U.S. President Donald Trump warned of retaliation against nations supporting Iran, his latest attempt to resolve a war that has stranded millions of barrels of Middle Eastern oil.
• Brent crude futures were up $1.94, or 2.1%, to $93.56 ​a barrel at 1:49 p.m. EDT, the highest price since July 24. U.S. West Texas Intermediate crude ​futures for September rose $2.18, or 2.5%, to $88.01 a barrel, also the highest level since ⁠July 24.
• Thousands of people have been killed in the war, which began nearly six months ago when ​the U.S. and Israel launched military strikes on Iran. Tehran's blockade of the Strait of Hormuz and Iranian attacks ​on energy facilities across the Middle East have sharply disrupted the flow of oil and gas to other parts of the ‌world. "Tensions ⁠in the Middle East remain high, leaving room for further supply disruptions," said Giovanni Staunovo, an analyst with UBS. "Lower oil exports from the Middle East are once again tightening the oil market."
• Shipping traffic through the Strait of Hormuz on Wednesday was unchanged from the day before, ​far below ⁠pre-war levels, according to the latest shipping data. Prior to the Iran war, shipments equal to about one-fifth of global consumption moved through the waterway.
• The war has also impacted the supply of refined fuels and drawn down inventories, with less ⁠crude ​available to refiners. U.S. stockpiles of distillate fuel, including diesel and heating ​oil, fell last week for a third straight week, the Energy Information Administration said on Wednesday. However, crude inventories unexpectedly rose by 4.4 million barrels.

(Source: Reuters)