Oil Heads for Third Yearly Gain on Mideast Tension, U.S. Economy

Crude futures headed for a third yearly advance on speculation escalating tension in the Middle East may disrupt supplies as a recovery in the U.S. economy bolsters demand.

West Texas Intermediate futures lost as much as 0.8 percent today after gaining yesterday when U.S. jobless claims fell to a three-year low. A U.S. State Department spokeswoman yesterday called Iran’s threats to shut the Strait of Hormuz “irrational behavior.” About one-sixth of global supply travels through the seaway. The country faces sanctions on its crude exports and a possible boycott by European buyers.