Meanwhile, the Saudis enjoy considerable success navigating the "closed" Hormuz strait: File Image/Pixabay.

 

As of mid-session Thursday, oil prices jumped again – with Brent rising by more than 4.5 percent to $107 per barrel and West Texas Intermediate climbing over 3.5 percent to nearly $96 per barrel – after the highly-publicized appearance by Iran and the U.S. at the United Nations General Assembly failed to produce any evidence of progress toward ending their seven-month war.

The gains were briefly reversed when Reuters reported that both parties were exploring a phased path out of the war.

However, if the continued sabre-rattling by both parties was any indication, conflicting ideologies were too great for there to be any meaningful hope of a return to peace: adding to Iran’s numerous threats over the past few sessions, Yahya Safavi, a former chief commander of the Islamic Revolutionary Guard Corps and current advisor to Iran's supreme leader, said his country may take the war to the Indian Ocean “or elsewhere” if the U.S. or Israel strikes again.

Meanwhile, officials in Saudi Arabia reported that six ballistic missiles launched by Iran-backed Houthis in Yemen had been intercepted, thwarting damage to the southern province of Taif and Yanbu on the Red Sea.

According to industry sources and shipping data, the Saudis are also steadily expanding  pumping volumes through their East-West Pipeline that runs to its Red Sea export hub of Yanbu, although crude tanker loadings have yet to resume.

Still, the rapid mending of the pipeline, widely regarded as an effective bypass of the Strait of Hormuz and which was attacked by Houthis, defied concerns by Goldman Sachs that recovery could take several months.

Additionally, the Saudis have had considerable success navigating the Hormuz, despite persistent claims from Iran that it has closed the waterway: trade sources with knowledge of the deals told
Bloomberg that the Kingdom transited 100 million barrels of crude, roughly one day of total global oil demand, since the middle of last week and shipped it to Asian buyers for October and November delivery.

Also on Thursday, the premium of Brent crude over WTI rose to its highest since May for a second day, which indicates it is more economic for energy firms to send vessels to the U.S. to pick up crude for export; however, analysts pointed out that the cost of chartering tankers has soared in recent months, causing a decline in exports from record highs of earlier this year.