Middle East Tensions Fuel Oil Price Surge

Oil prices surged to over three-week highs on Thursday due to concerns that the ongoing impasse in Iran may continue to disrupt supply from key Middle Eastern producing regions. Brent crude futures for October delivery rose by $2.19, or 2.39%, to $93.81 a barrel at 1257 GMT.

The UAE's decision to suspend all financial and economic transactions with Iran has refocused attention on the strained ties between major Gulf Arab oil producer and Iran. This move has led to uncertainty over peace talks and tensions involving the United Arab Emirates, Oman, and Iran.

UBS analyst Giovanni Staunovo noted that 'tensions in the Middle East remain high, leaving room for further supply disruptions.' He added that lower oil exports from the region are once again tightening the oil market. Oil prices remained elevated due to sporadic attacks in the Middle East but lack fresh momentum without a major escalation.