Oil rises as Middle East supply concerns persist amid shipping attacks

Oil prices surged on Thursday as concerns over Middle East supply remained high due to attacks on shipping in the Gulf and the Strait of Hormuz. Brent crude futures climbed $1.33, or 1.33 percent, to $101.53 a barrel, while US West Texas Intermediate (WTI) crude futures increased $1.11, or 1.26 percent, to $89.39. Prices dipped on Wednesday following the International Energy Agency's decision to speed up oil stock releases and prioritize diesel supplies.

Despite this, attacks on oil shipments in the region have intensified in October, as the conflict between the US and Iran entered its eighth month. The Strait of Hormuz, which carries about 20 percent of global oil and fuel, has seen a rise in threats to shipping. In the latest incident, a tanker near Qatar was hit by multiple projectiles, resulting in casualties.

Producers are willing to take the risk of damaged vessels, as there are no alternative routes for their oil to reach international markets. The IEA's oil release is expected to consist of barrels already part of the initial 400-million-barrel release plan, rather than representing new production capacity. US inventory data showed a higher-than-expected drop in crude stockpiles and a slight decline in diesel inventories, supporting prices.