FINWIRES · TerminalLIVE
FINWIRES

EMEA Oil Update: Brent Gains as US-Iran Clashes Tighten Supplies

By

(now tracks Dubai First Line (Platts) energy futures as Adnoc phases out Murban.)

Crude oil benchmarks were mixed on Wednesday amid escalating US-Iran hostilities and a plunge in commercial vessel traffic through the Strait of Hormuz.

Brent crude futures gained 1% to $95.61 per barrel, while ICE Dubai First Line (Platts) energy futures were down 0.2% to $85.15/bbl, and eased from a near three months high.

"Crude oil extended gains as fresh US attacks on Iran raised concerns about prolonged disruptions to supply," ANZ analysts said.

According to US Central Command, American forces launched a large-scale wave of strikes against Islamic Revolutionary Guard Corps targets in response to attempted attacks on commercial shipping and failed efforts to deploy sea mines in the Strait of Hormuz.

In retaliation, IRGC officials warned of severe punishment and claimed responsibility for operations targeting US bases in the region, while the US administration maintained a naval blockade aimed at crippling Iranian oil exports.

Geopolitical tensions severely impacted physical logistics, with commercial vessel traffic through the Strait of Hormuz plunging by half to just five crossings on August 31, down from ten a day prior.

However analysts note that while a "dark fleet" of clandestine shuttle movements by Persian Gulf producers has attempted to bypass the bottleneck, overall export volumes continue to decline.

Analysts said that these alternative routes remain insufficient to offset regional flow restrictions, tightening global crude and refined product balances.

On the domestic supply front, American Petroleum Institute data released on Tuesday showed that US crude oil inventories fell by 2.6 million barrels for the week ended August 28, following a 4.2 million-barrel build the previous week.

Markets are now awaiting confirmation from the US Energy Information Administration's inventory report to gauge the trajectory of domestic reserves as ongoing Middle Eastern disruptions keep global inventories under intense pressure.

"Moreover, the oil market is likely to come under significant stress, as disruptions to flows from the Persian Gulf continue to tighten global crude and refined product balances. This will keep inventories under pressure and support elevated prices," ANZ added.

Related Articles

Oil & Energy

Hormuz Shipping Slumps as Tanker Attacks, US Strikes Raise Risks

Commercial vessel traffic through the Strait of Hormuz plunged by half on Monday as renewed tanker attacks and heightened US-Iran tensions continued to deter shipping through the strategic waterway.The latest data from Kpler and MarineTraffic show that five vessels crossed the Strait of Hormuz on Aug. 31, down from 10 a day earlier."Four vessels entered the Middle East Gulf and one exited, using a mix of Iranian, Omani and negotiated routes," Kpler posted on X.The transits also included two shadow-fleet vessels and one sanctioned vessel, according to MarineTraffic.The sharp decline came as maritime security risks remained elevated.The UK Maritime Trade Operations reported two attacks on Aug. 31, including an incident involving a tanker struck by three unidentified projectiles while completing an outbound transit of the strait off Oman.Separately, the UKMTO warning said a tanker was struck by an unknown projectile while transiting inbound toward the Arabian Gulf on Aug. 29.The incidents underscore the continuing threat to commercial shipping despite efforts to reopen the waterway.Commercial traffic remains far below normal levels. Kpler reported that crossings had fallen after renewed conflict, with traffic shifting heavily toward routes that are not fully recognised by international authorities.US military operations have added another layer of uncertainty for shipping in the region.US forces began strikes on Islamic Revolutionary Guard Corps targets in Iran near the Strait of Hormuz on Tuesday, following what Washington said were attempted IRGC attacks on commercial shipping in the Hormuz."Today at 12 p.m. ET, U.S. forces began striking Islamic Revolutionary Guard Corps (IRGC) targets in Iran. The strikes follow recent attempted attacks by the IRGC against commercial shipping in the Strait of Hormuz and against American service members deployed to the region," US Central Command posted on X.US Centcom posted on X that it had redirected 84 commercial vessels, disabled three and boarded two as of Sept. 1.The International Maritime Organization's daily Strait of Hormuz incident tracker showed that the total number of confirmed maritime security incidents in the region was 71 as of Sep. 1.The IMO tracker provides a daily log of verified strikes on ships attempting to transit the Strait of Hormuz since the conflict began, with the earliest incident recorded on March 1.Meanwhile, traffic via the Bab el-Mandeb was comparatively more stable.Kpler data showed 35 confirmed crossings on Aug. 31, up 2.9% from the previous day. Of the total, 19 vessels entered the Red Sea and 16 exited, MarineTraffic said, noting that no dark transits were recorded.UKMTO reporting showed no confirmed attack or disruption in the southern Red Sea or Bab el-Mandeb.Commercial traffic there nevertheless remained well below normal levels, consistent with the reduced activity seen since the Houthi declaration on July 20, the UKMTO said.

Oil & Energy

US Oil Update: Crude Rallies After US Hits IRGC Targets, Tanker Attacks Stoke Supply Fears

Crude oil futures settled higher by over 5% in after-hours trading on Tuesday as the US military launched fresh attacks on Islamic Revolutionary Guard Corps targets in Iran and attacks on tankers stoked concerns over potential disruptions in the Strait of Hormuz.Front-month West Texas Intermediate crude rose by 5.7% to $90.68 per barrel, while Brent futures climbed 5.2% to $95.18/bbl.The US launched a fresh wave of strikes against targets in Iran on Tuesday, extending a back-and-forth of fighting with neither side prepared to cede control over the Strait of Hormuz."Today at 12 p.m. ET, U.S. forces began striking Islamic Revolutionary Guard Corps (IRGC) targets in Iran," the US Central Command said in a social media post on Tuesday.Centcom said the strikes followed attempted IRGC attacks on commercial shipping in the Hormuz and US service members.President Trump described the strikes as "large and powerful" in a Truth Social post on Tuesday, saying they were retaliation for Iran's attempt to add sea mines to the Strait of Hormuz and its missile attack on a US base in Jordan."The strikes are large and powerful, and in retaliation for the Iranians' failed attempt at adding sea mines to the Strait, which currently has no mines...," the US President said in a post on Truth Social.Trump also threatened a significantly larger response if Tehran retaliates, saying Iran would be hit "at a much harder and higher level" and warning that an even bigger attack was "waiting in the wings."Iran's state-owned IRIB reported that several explosions were heard east of Bandar Abbas and around Qeshm island.IRGC spokesperson Sardar Mohebi said in a post on X that the US will regret its latest attacks. "Severe punishment awaits the aggressors...," Mohebi said.Fueling bullish sentiment, the UK Maritime Trade Operations Center said that a tanker was struck by three unknown projectiles while transiting Hormuz on Monday. The maritime security agency said the tanker was sailing in the southern shipping lane near the Omani coast.The UKMTO also said that it had received a report of an incident involving a tanker and military forces in the Indian Ocean, off the Omani coast.Gelber & Associates said the two supertankers carrying Saudi crude each carried about 2 million barrels. The analysts said that the near-simultaneous attacks raised doubts about the safety of the Omani corridor being used to move barrels through the disrupted waterway.On the supply side, commercial shipping through the strategic waterway plunged by half at the end of August, the latest data from Kpler showed on Tuesday, with five confirmed vessel crossings on Aug. 31, down from 10 a day earlier. Four vessels entered the Middle East Gulf while one exited.Going forward, Soojin Kim, a research analyst at MUFG, said that persistent geopolitical tensions and tanker attacks are likely to keep a risk premium embedded in oil prices, with Gulf producers' ability to maintain exports remaining the key factor.

Oil & Energy

Nuran Wireless to Delist From The CSE; Plans to Expand Platform Offering in Africa

Nuran Wireless (NUR.CN) said Tuesday after trade that it plans to delist from the Canadian Securities Exchange.Delisting will be more economic for the company, whose shares will continue to trade on the NASDAQ, a statement said.Nuran earlier Tuesday said it plans to expand its Network-as-a-Service platform into a broader Infrastructure-as-a-Service platform.The company has over 5,000 rural connectivity sites deployed and contracted with major mobile network operators in rural Africa. By adding local processing capabilities, Nuran hopes to increase the revenue potential of each site beyond mobile connectivity alone.The first pilots are expected to focus on network data and local content storage. Over time, the nodes could support future AI-driven services in Africa, a statement said.Nuran Wireless shares closed up C$0.34 at C$3.04 on the Canadian Securities Exchange.

$NUR.CN