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EMEA Oil Update: Brent Hovers Near 3-Week High on Supply Concerns

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Brent futures extended gains and hovered near a three-week peak on Thursday supported by escalating Middle East shipping disruptions raising supply concerns.

Brent gained 0.9% to $92.47 per barrel and hovered near its highest since July 30, while Murban crude futures closed at $99.40/bbl on Wednesday and were not trading at the time of publication of this update.

"Brent crude held above $91 per barrel into Thursday's session, extending a four-day run of gains as President Trump announced sweeping new economic measures against Iran and the UAE cut trade and financial ties with Tehran," Saxo Bank analysts said.

Regional tensions intensified as three China-linked supertankers turned around in the Strait of Hormuz, while commercial tracking data showed traffic through the key waterway remaining depressed due to persistent military activity.

However, US President Donald Trump noted at the White House that the Strait of Hormuz remains open for vessel traffic.

Meanwhile, Ebrahim Rezaei, a member of Iran's parliament's national security and foreign policy committee reportedly said on Wednesday that Iran could place the Strait of Hormuz under armed forces control and restrict certain vessels under a proposed security bill.

On the supply side, US commercial crude oil inventories increased by 4.4 million barrels to 428.8 mmbbls in the week ended Aug. 14, the Energy Information Administration said in its weekly report released Wednesday.

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