Oil prices climbed on Friday, putting Brent and US crude on track for a fourth consecutive monthly gain as fresh attacks in the Middle East renewed concerns over disruptions to global energy supplies.
The latest trigger was an attack on a tanker in the Strait of Hormuz, one of the world’s most important shipping routes for oil and fuel. The UK Maritime Trade Operations (UKMTO) said the vessel was struck by explosive devices attached by a small boat. The attackers have not been identified.
Brent crude futures for December delivery rose $1.20, or 1.04 percent, to $116.08 a barrel by 0323 GMT. The December contract expires on Friday, prompting traders to turn their attention to the more actively traded January contract, which gained $1.39 to $112.19.
US West Texas Intermediate (WTI) crude also moved higher, adding $1.37, or 1.34 percent, to reach $103.37 a barrel.
The gains have put both benchmarks on course for another strong month. Brent is heading for an increase of nearly 11 percent in October, while WTI is set to finish around 14 percent higher.
The latest attack has added to an already tense situation around the Strait of Hormuz, a narrow waterway through which a significant share of the world’s oil supplies passes. Any disruption to shipping in the area could have serious consequences for global energy markets.
Saul Kavonic, head of energy research at MST Marquee, said continued attacks around the strait and limited confidence in a diplomatic breakthrough were keeping prices high. He warned that markets were increasingly factoring in the possibility of a further escalation in the coming weeks.
Concerns have also spread beyond the shipping lanes. Yemen’s Houthi group said on Thursday it had targeted several sites in Saudi Arabia, including the country’s largest oil refinery at Ras Tanura, the Rabigh refinery and an oil production facility at Abqaiq operated by Saudi Aramco.
Saudi Arabia’s response added to regional tensions, with a Saudi-led coalition reporting that it had intercepted a cruise missile fired towards the kingdom’s western region.
There have been fresh signs of possible diplomatic engagement between Washington and Tehran, although a breakthrough remains uncertain.
US President Donald Trump said Vice President JD Vance had contacted Iran to help arrange medical supplies for the country. The development came after US media reported that Vance had sent a letter to Iran’s top security official in an effort to restart peace talks.
Iran has received the letter but has yet to respond, according to the semi-official Tasnim news agency. Tehran has also made clear that any engagement must meet its conditions, rejecting proposals that fall outside its stated framework.
The security situation is also affecting the energy industry. ExxonMobil and Chevron have cancelled plans for their executives to attend the United Arab Emirates’ biggest oil show next week, two sources familiar with the matter told Reuters.
Looking ahead, traders may face even greater uncertainty. Ole Hansen, head of commodity strategy at Saxo Bank, said oil markets could become more volatile over the next two weeks as Israel prepares for parliamentary elections and the US approaches its midterm congressional vote.
While forecasting prices remains difficult, Hansen expects crude to settle into a higher trading range of $70 to $90 a barrel after the conflict ends. That would still be above the pre-war range of $60 to $70, reflecting the possibility of renewed hostilities and the need to rebuild depleted oil inventories.
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