Oil prices surged on Friday, heading for a fourth consecutive monthly gain as fresh security threats in the Strait of Hormuz intensified concerns over global energy supplies amid the ongoing US-Israeli war on Iran.
Brent crude futures for December delivery rose $1.20, or 1.04%, to $116.08 per barrel by 0323 GMT. The January contract, which is more actively traded, gained $1.39 to reach $112.19. Meanwhile, US West Texas Intermediate (WTI) crude climbed $1.37, or 1.34%, to $103.37 per barrel.
Both benchmarks remained on track for substantial monthly gains. Brent was set to close October nearly 11% higher, while WTI was heading towards a 14% increase.
Market concerns intensified after the UK Maritime Trade Operations (UKMTO) reported that a tanker was attacked in the Strait of Hormuz. Explosive devices attached to a small boat struck the vessel, although the identity of those responsible remained unclear.
The incident has raised fresh concerns about the safety of one of the world’s most important energy shipping routes, which serves as a major passage for crude oil and fuel exports from the Gulf.
Saul Kavonic, head of energy research at MST Marquee, said continued military activity around the strait and uncertainty over diplomatic efforts were keeping oil prices high. He warned that expectations of further escalation in the coming weeks were adding to market pressure.
Regional tensions also increased after Yemen’s Houthis claimed attacks on several Saudi targets, including the Ras Tanura and Rabigh oil refineries and an Aramco production facility in Abqaiq. Meanwhile, a Saudi-led coalition reported intercepting a Houthi cruise missile heading towards the kingdom’s western region.
Diplomatic developments between Washington and Tehran also remained uncertain. US President Donald Trump said Vice President JD Vance had contacted Iran to facilitate the delivery of medical supplies. The development followed reports that Vance had sent a letter to Iran’s top security official in an effort to revive peace negotiations.
Iran has received the letter but has yet to respond, according to the semi-official Tasnim news agency. Tehran reportedly insists that Washington must accept its conditions, rejecting any approach that falls outside its proposed framework.
Security concerns have also affected the energy industry. 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.
Ole Hansen, head of commodity strategy at Saxo Bank, warned that oil markets could experience further volatility over the next two weeks. He pointed to uncertainty surrounding Israel’s parliamentary election and the US midterm congressional elections as additional factors influencing market sentiment.
Despite the possibility of an eventual end to the conflict, Hansen expects crude prices to remain above pre-war levels. He projected that oil could trade between $70 and $90 per barrel, compared with the earlier range of $60 to $70, citing the possibility of renewed hostilities and the need to rebuild depleted global reserves.
