[International Oil Prices] Gains Continue on Supply Disruption Concerns; WTI Rises for Fifth Straight Day

[Financial News]  

International oil prices continued to rise on the 4th (local time). Prices remained on an upward trend as concerns intensified over instability in the Bab-el-Mandeb Strait, the gateway to the Suez Canal and one of the world's key crude oil shipping routes, as well as the Strait of Hormuz.
Brent crude for November delivery, the benchmark for international oil prices, settled at $96.28 per barrel, up 0.80% from the previous session.
West Texas Intermediate crude oil (WTI) for October delivery, the U.S. oil benchmark, rose for five consecutive days since August 31. It ended the day at $91.48 per barrel, up 0.20%.
Intense armed clashes broke out near the Bab-el-Mandeb Strait, the entrance to the Red Sea leading to the Suez Canal, between Yemen's government forces and Iran-aligned Houthi rebels. The fighting erupted as the Houthi rebels advanced toward the strait, with at least 129 people reportedly killed in a single day. This was the highest death toll from a single armed clash during the civil war, which has lasted for years.
If the strait is blocked, ships will be unable to pass through the Suez Canal and will have to take a lengthy detour around the Cape of Good Hope in South Africa. Disruptions to oil supplies would become unavoidable.
Meanwhile, U.S. President Donald Trump warned that the United States could attack Pickaxe Mountain, which is suspected of housing Iran's underground nuclear facilities. As the conflict with Iran escalated, concerns that disruptions to traffic through the Strait of Hormuz could last longer also put upward pressure on oil prices.

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