Oil prices rose for a fifth straight session on Thursday as uncertainty over the US-Israeli war with Iran continued to raise fears of tighter supplies from the Middle East.
Brent crude futures for October delivery gained 35 cents, or 0.38 percent, to $91.97 a barrel by 0632 GMT. US West Texas Intermediate crude for September delivery rose 17 cents to $86 a barrel, while the more active October contract added 38 cents, or 0.45 percent, to $84.77.
Both major benchmarks settled at their highest levels since July 24 on Wednesday, extending a recent rally driven by concerns over the conflict and its impact on oil shipments.
Hiroyuki Kikukawa, chief strategist at Nissan Securities Investment, said oil prices remained high as sporadic attacks in the region continued to support the market. However, he noted that prices lacked fresh momentum without a major escalation.
Uncertainty around peace talks is also keeping traders cautious. The situation has drawn further attention to ties between Iran and the United Arab Emirates after the UAE suspended financial and economic transactions with Iran until further notice.
The Strait of Hormuz remains another major concern for the oil market. US President Donald Trump said on Tuesday that the waterway was open and that no talks were taking place with Iran. Tehran, however, said the strait remained closed.
Shipping traffic through the strategic waterway was unchanged on Wednesday, according to shipping data. Before the war began on February 28, about one-fifth of global oil consumption passed through the Strait of Hormuz. Current flows remain well below those levels.
The conflict has also affected refined fuel supplies and reduced crude availability for refiners. US distillate inventories, which include diesel and heating oil, fell for a third consecutive week last week.
However, US crude inventories rose by 4.4 million barrels in the week ended August 14, against expectations for a decline of 600,000 barrels. The unexpected increase could limit some of the upward pressure on oil prices.
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