Oil prices rose on Friday and were on track for a fourth monthly gain after an attack on a tanker in the Strait of Hormuz underscored the supply risks tied to the US-Israeli war on Iran, which is now in its eighth month.
Brent crude futures for December, which expire on Friday, climbed $1.20, or 1.04%, to $116.08 a barrel by 0323 GMT. The more actively traded January contract gained $1.39 to $112.19. For the month, Brent was set to finish nearly 11% higher, while WTI was heading for a 14% rise.
Tanker strike and Houthi attacks raise Gulf alarm
The UKMTO said a tanker in the Strait of Hormuz, a key sea route for Gulf crude and fuel shipments, was hit by explosive devices attached by a small boat. It was not immediately clear who was responsible for the attack.
Also read: Oil prices rise over $3 as Houthi attacks lift Brent
On Thursday, the Houthis said they had attacked several sites in Saudi Arabia, including the Ras Tanura refinery, the Rabigh refinery and a production facility at Abqaiq owned by state company Saudi Aramco. A Saudi-led coalition said it had intercepted a cruise missile that the Houthis launched toward the kingdom’s western region.
Diplomatic signals and executive travel changes
US President Donald Trump said on Thursday that Vice President JD Vance had reached out to Iran to help it obtain medical supplies. US media had earlier reported that Vance wrote to Tehran’s top security official to revive peace talks.
Iran has received a letter from Vance but has not yet responded, the semi-official Tasnim news agency reported. Tehran wants Washington to meet its conditions, and the agency said that any position contradicting that framework is unacceptable.
Two people familiar with the matter said ExxonMobil and Chevron had cancelled plans for their executives to attend the United Arab Emirates’ largest oil exhibition next week, citing security concerns in the Middle East.
Analysts expect continued volatility ahead
Saul Kavonic, head of energy research at MST Marquee, said ongoing strikes around the Strait of Hormuz, along with doubts about a workable diplomatic route, were keeping prices elevated as the conflict could escalate in the coming weeks.
Ole Hansen, head of commodity strategy at Saxo Bank, told a media briefing in Singapore on Thursday that prices could become even more volatile over the next couple of weeks because of Israel’s parliamentary election and the US midterm congressional vote. He said uncertainty made forecasting difficult, but he expects crude to trade between $70 and $90 a barrel, compared with a pre-war range of $60 to $70. He expects that level to hold even after the conflict ends, citing the risk of renewed hostilities and the need to replenish inventories.
