FX.co ★ Crude Oil Rises for 2nd Session

Crude oil rose above $93 a barrel on Thursday, building on a 1.8% advance in the previous session, as escalating tensions in the Middle East dimmed hopes for a diplomatic resolution to the conflict. Yahya Rahim Safavi, military adviser to Iran’s Supreme Leader, warned that the confrontation could spread from the Persian Gulf, Strait of Hormuz and Red Sea to the Indian Ocean if the US or Israel were to launch another attack. His comments undercut earlier optimism about potential progress in US-Iran talks on the sidelines of the UN General Assembly. Iranian President Masoud Pezeshkian said Tehran was ready to resume negotiations to end the conflict but would not bow to threats. He also stated that Iran would curb freedom of navigation through the Strait of Hormuz as long as US sanctions and a blockade remain in place. With Washington and Tehran still far apart on key issues affecting energy transit, oil markets remained highly sensitive to any further escalation.