Oil Prices Soar on Renewed Middle East Tensions and Declining Inventories

Oil prices surged to fresh six-week highs on Thursday after renewed tensions in the Middle East triggered concerns about disruptions to global supplies.

The Brent crude futures contract rose $1.66, or 1.7%, to $97.29 a barrel by 1200 GMT, while U.S. West Texas Intermediate crude futures increased $2.03, or 2.2%, to $93.04.

The latest price hike was fueled by the U.S. strikes on Iran and Israeli Defence Minister Israel Katz's warning that Israel would 'cripple' Iran's military and civilian infrastructure if Tehran launched attacks against it, according to Saxo Bank analyst Ole Hansen.

Global oil inventories continue to decline, contributing to higher prices, said UBS energy analyst Giovanni Staunovo. Meanwhile, Iraq increased its oil exports in August and is expected to see further growth in September.