Oil prices hit fresh 6-week highs on renewed Middle East tensions

Oil prices surged to six-week highs on Thursday due to heightened tensions between the U.S. and Iran. Brent crude futures climbed $1.66, or 1.7 percent, to $97.29 a barrel, while West Texas Intermediate crude futures rose $2.03, or 2.2 percent, to $93.04. The increases followed U.S. strikes on Iran and Israeli threats to disrupt Iran's military and civilian infrastructure.

Iran's health minister reported 18 deaths and 108 injuries, while the Iranian Red Crescent stated four people were killed and 67 wounded at a wedding near the Strait of Hormuz. Three Iranian Army pilots perished in the U.S. strikes. The latest attacks marked the most significant exchange since July, with the conflict now in its seventh month.

Israeli Defence Minister Israel Katz warned Israel would cripple Iran's military and civilian infrastructure if Tehran attacked. This boost in oil prices may be fueled by tensions and tight global oil supplies, with six commodity vessels transiting the Strait of Hormuz on Wednesday, down from 11 the day before. Iran added more non-compliant vessels to its list, subject to fines if they attempt to pass through the strait.

Iraq increased its oil exports to 2.34 million barrels per day in August, up from 1.35 million bpd in July.