Oil set for steepest weekly gain since mid-July over intensifying US-Iran tensions

U.S. attacks this week that killed and wounded dozens, ​including Iranian civilians, marked the fiercest clashes between the two countries since July. The war, ​which began with U.S.-Israeli strikes at the end of February, is now in its seventh month.

Israeli Defence Minister Israel Katz renewed warnings that Israel would "cripple" Iran's military ​and civilian infrastructure, including energy facilities. U.S. Vice President JD Vance told ​reporters on Thursday that Washington does not plan to hold talks with Iran unless ‌Tehran ⁠stops attacking commercial shipping in the Strait of Hormuz.

Capping oil's advance, however, Russian President Vladimir Putin said there remained a path to a deal to end the war in Ukraine, adding that both the U.S. and ​China were prepared to support ​a peace ⁠settlement. Meanwhile, Iran expanded its list of vessels it deems non-compliant and subject to fines, confiscation or detention if they attempt to ​transit the strait.

Iraqi ships remain among the few ​vessels Tehran ⁠has cleared to pass through Hormuz. Iraq increased its oil exports to around 2.34 million barrels per day in August from about 1.35 million ⁠bpd ​in July, two Iraqi energy officials said ​on Wednesday, with September exports also expected to increase as heavy discounts and Iranian ​approvals for Iraqi tankers encouraged buyers.