Oil rose a third day on signs the conflict in the Middle East is escalating, threatening to hamper a recovery in energy flows from the region. West Texas Intermediate rose above $93 a barrel after adding almost 3% in the previous session, while Brent settled around $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 escalate attacks on Iran. The renewed tensions comes 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. 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.
Oil futures have swung sharply this week as traders weighed the improving Middle East flows against the risk of escalation. Brent remains 70% higher this year as the US-Iran war stretches into an eighth month, with little progress toward a diplomatic resolution.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing