BRENT CRUDE NEARS FOUR-MONTH HIGH AMID MIDDLE EAST SUPPLY DISRUPTION

The UK awaited fresh inflation figures on Thursday, expected to show further impact from the war involving Iran feeding through into the economy, according to a market report. Brent crude, the international benchmark for oil, was trading near $108 a barrel, close to a four-month high. Figures from the American Petroleum Institute showed US crude stockpiles rose by 7.14 million barrels over the past week, following a 300,000-barrel decline the week before, defying expectations of a further drawdown. The pound and UK shares were reported to be trading stronger ahead of the release of the inflation data.

Saudi Arabia halted oil loadings at its Yanbu port after the closure of the East-West pipeline, described as a key alternative route to the Strait of Hormuz, with no timeline given for reopening. In Libya, the National Oil Corporation suspended operations at two oilfields and a pumping station amid ongoing protests. The disruptions came alongside wider concerns about oil supply across the Middle East linked to the conflict involving Iran. The UK's Maritime Trade Operations said a vessel had been struck by an unknown projectile in the Strait of Hormuz, though it reported no damage or environmental impact.

The strike added to concerns that the Strait of Hormuz, a narrow passage used for a significant share of global oil shipments, remained unsafe for vessels. The US said its forces had redirected more than 100 commercial vessels away from the strait to ensure compliance with its naval blockade. No date has been confirmed for when operations might resume at the affected Saudi pipeline or the Libyan oil sites. Market attention remained focused on how the combined disruptions to Saudi, Libyan and Strait of Hormuz supply routes would affect UK inflation figures due for release.