Oil prices were little changed during Asian trade on Thursday as investors assessed the outlook for the United States-Iran war and the security of shipping through the Strait of Hormuz.
By 3:10 pm AEST (5:10 am GMT), Brent crude futures for November delivery had gained 4 cents to $89.83 a barrel, while U.S. West Texas Intermediate (WTI) crude futures for October delivery rose 9 cents, or 0.1%, to $84.48 a barrel.
Both Brent and WTI gained for a fourth consecutive session on Wednesday, rising 0.7% and 0.4%, respectively, to settle at their highest levels since July 24.
ANZ analysts said in a note to clients:
"Crude oil prices continued to push higher as rising tensions in the Middle East threatened to disrupt oil flows even more.
"The United Arab Emirates said that it was cutting all economic ties with Iran after it accused it of firing ballistic missiles at its territory.
"This is the first exchange since the earlier stages of the current Middle East conflict. While UAE’s energy infrastructure was not targeted, it closes another potential avenue for diplomatic efforts to end the conflict and reopen the Strait of Hormuz.
"This latest event has kept risks to shipping in the region at elevated levels."
On Wednesday, U.S. President Donald Trump announced an “economic D-Day” against Iran in a post on Truth Social:
“Today, I am announcing the MOST CRUSHING ECONOMIC OPERATION EVER TAKEN AGAINST ANY COUNTRY! This will be Economic Warfare and Isolation on an unprecedented scale.
"Their navy is gone, their air force is destroyed, their military factories are now rubble, their currency is worthless, and their country is hanging by a thread.
"Today, I am also announcing that ANY country that allows its financial institutions, businesses, airports, or government entities to provide any type of lifeline to Iran will itself face TREMENDOUS Economic Consequences.
"Oil smuggling, swap lines, cash transfers, exchange houses, ship registries, front companies — It all needs to stop NOW. You know who you are.
"This will be an ECONOMIC D-DAY, and we need all of our Allies to stand with the United States of America to isolate, and defeat, the Iran threat. ”
In the U.S., crude and gasoline inventories increased while distillate stockpiles declined last week, according to the Energy Information Administration (EIA).
U.S. crude inventories rose by 4.4 million barrels in the week ended August 14, compared with market expectations for a 600,000-barrel draw.
