LONDON: Global oil prices rose on Friday, putting crude benchmarks on track for a fourth consecutive monthly gain, as an attack on a tanker in the Strait of Hormuz heightened concerns over potential supply disruptions amid the ongoing US-Israeli war on Iran.
Thank you for reading this post, don't forget to subscribe!Brent crude futures for December delivery, which expire on Friday, increased by $1.20, or 1.04 per cent, to $116.08 per barrel as of 0323 GMT. The more actively traded January contract climbed $1.39 to $112.19 per barrel.
US West Texas Intermediate (WTI) crude futures also advanced by $1.37, or 1.34 per cent, to $103.37 per barrel.
For October, Brent was on course to record a gain of nearly 11 per cent, while WTI was heading towards a monthly increase of approximately 14 per cent.
Market concerns intensified after the United Kingdom Maritime Trade Operations (UKMTO) reported that a tanker in the Strait of Hormuz had been struck by explosive devices attached by a small boat. The identity of those responsible for the attack was not immediately established.
The Strait of Hormuz is a critical maritime route for global crude oil and petroleum product shipments, making any security incident in the waterway a major concern for energy markets.
Saul Kavonic, Head of Energy Research at MST Marquee, said continued military activity around the strait, combined with uncertainty over diplomatic efforts, was keeping oil prices elevated amid expectations of further escalation in the coming weeks.
Geopolitical concerns also increased following reports that Yemen’s Houthi movement had targeted several locations in Saudi Arabia, including the country’s largest oil refinery at Ras Tanura, the Rabigh refinery and a production facility in Abqaiq operated by Saudi Aramco.
Meanwhile, a Saudi-led coalition reported intercepting a cruise missile launched towards the kingdom’s western region.
Diplomatic developments between Washington and Tehran also remained in focus. US President Donald Trump said on Thursday that Vice President JD Vance had contacted Iran to facilitate the provision of medical supplies, following reports that Vance had written to Iran’s top security official in an effort to revive peace negotiations.
Iran has received the letter but has not yet responded, according to the semi-official Tasnim news agency. Tehran reportedly wants Washington to meet its conditions, maintaining that proposals outside its stated framework would be unacceptable.
Heightened regional security concerns have also affected the energy industry’s activities. ExxonMobil and Chevron have reportedly cancelled plans for their executives to attend the United Arab Emirates’ largest oil exhibition next week, according to sources familiar with the matter cited by Reuters.
Analysts warned that oil markets could experience further volatility over the next few weeks amid geopolitical uncertainty and upcoming political developments, including Israel’s parliamentary election and the US midterm congressional elections.
Ole Hansen, Head of Commodity Strategy at Saxo Bank, said the prevailing uncertainty made it difficult to forecast oil prices. However, he expected crude to trade within a higher range of $70 to $90 per barrel even after the conflict ends, compared with the pre-war range of $60–70.
He attributed the expected higher price range to the possibility of renewed hostilities and the need for countries to replenish depleted oil inventories.
The latest developments underline the continued sensitivity of global energy markets to geopolitical tensions, particularly around the Strait of Hormuz, where any prolonged disruption could affect international oil supplies, shipping costs and fuel prices.
By Reuters
