Oil prices are positioned for another monthly rise as the possibility of renewed U.S. military action against Iran has overshadowed hopes for a diplomatic resolution. The prospect of conflict has intensified concerns regarding potential supply chain interruptions in the Middle East. As of 07:25 ET, Brent crude futures climbed 2.4% to $117.60 per barrel, while U.S. West Texas Intermediate (WTI) gained 2.1% to reach $104.10 per barrel.
Both benchmarks are on track for a fourth straight month of gains, with Brent approaching a 14% increase and WTI heading for a 15% rise in October. Analysts at Britannia Global Markets noted that Brent has reached its highest level since April due to regional tensions, which is contributing to global inflationary pressures.
Uncertainty surrounding oil flows was further highlighted by an incident in the Strait of Hormuz, a critical passage for global energy trade. According to the United Kingdom Maritime Trade Operations, a new tanker was struck by an explosive device in the strait on Friday. This event underscores the ongoing risks to maritime security in the region.
In Washington, reports indicate that U.S. Central Command Chief Admiral Brad Cooper briefed President Donald Trump on military options regarding Iran at the White House on Thursday. The meeting, which included Defense Secretary Pete Hegseth and other senior officials, addressed the continuing U.S. blockade and the potential for renewed major combat operations. President Trump has suggested that additional strikes could occur after the November 3 midterm elections, stating that "anything's possible" when questioned about future attacks.
These developments have complicated efforts to reach a diplomatic settlement, even as Washington seeks fresh contacts with Tehran. U.S. Vice President JD Vance reportedly reached out to Iranian security official Mohsen Rezaei to revive negotiations, and mediators are working on a framework to end the conflict. However, Tehran has allegedly rejected a proposed settlement, leaving the outlook for a near-term agreement uncertain.
Regional instability continues to impact energy infrastructure, with Saudi Arabia's air defenses intercepting another ballistic missile launched by Yemen's Iran-aligned Houthi movement toward the Eastern Province. This incident followed Houthi claims of an attack on the Ras Tanura refinery earlier in the week. The persistent threats to regional facilities have helped sustain a geopolitical risk premium in oil prices.
Sources: Investing.com News.