Oil prices steady as investors assess US-Iran war outlook

Oil prices reached three-week highs on Thursday due to concerns about ongoing disruptions to Middle Eastern supply, driven by the unresolved Iran war. Brent crude futures for October delivery climbed $2.19, or 2.39%, to $93.81 a barrel, while U.S. West Texas Intermediate crude futures for September gained $2.33 to $88.16 a barrel.

Both benchmarks hit their highest since July 24 and climbed for a fifth consecutive session. UBS analyst Giovanni Staunovo noted that tensions in the Middle East remain high, leaving room for further supply disruptions. The UAE's recent decision to suspend all financial and economic transactions with Iran has further highlighted the strained relations between the Gulf Arab oil producer and Iran.

While sporadic attacks in the region have kept oil prices elevated, the market lacks fresh momentum without a major escalation. The situation remains uncertain due to ongoing peace talks and tensions involving the UAE, Oman, and Iran.