US-Iran Conflict Drives Crude Oil Prices to Three-Month High

Crude oil prices surged to a three-month high on Wednesday as the US-Iran conflict shows no signs of abating. The October WTI crude oil (CLV26) price climbed 3.25% to close at $+3.02. This increase is largely driven by concerns over global oil supplies, with the Vitol Group warning that markets are tightening due to reduced exports from the Middle East and Russia.

The conflict in the region has led to a significant decrease in crude exports. Saudi Arabia's August exports dropped to 3 million bpd, the lowest level in nine years. The International Energy Agency (IEA) also forecasted a worsening global oil supply deficit, with inventories expected to fall at twice the previously estimated rate.

The situation is further complicated by drone attacks on Russian oil infrastructure, which have curbed crude production and exports. Russia's gasoline production fell to 80,000 tons per day in August, only 70% of domestic demand.