Oil prices rose sharply on Thursday as the US considered resuming military strikes against Iran, threatening energy flows through the Strait of Hormuz. Brent crude climbed above $115 a barrel, while West Texas Intermediate neared $103, following a volatile session. A top commander briefed President Donald Trump on military options, with the WSJ reporting potential airstrikes after the midterm elections.
Iran’s Parliament Speaker Mohammad Bagher Ghalibaf insisted the nation’s positions would not be compromised, even as US Vice President JD Vance sent a letter to revive peace talks. Brent has surged 12% in October, reaching a six-month high, despite continued shipping through Hormuz. Low inventories and tight refined product supplies have supported prices, exacerbated by Ukrainian attacks on Russian refineries.
Regional tensions escalated after a tanker was hit by an unknown projectile near Hormuz. Exxon Mobil and Chevron canceled plans to attend the ADIPEC conference in Abu Dhabi due to security concerns. Ukraine has paused strikes on Russian refineries under pressure from Trump until after the Nov. 3 midterms.
In Israel, Prime Minister Benjamin Netanyahu’s bloc won 53 seats, short of a majority. Oil majors Exxon and Chevron report earnings Friday, with Shell CEO Wael Sawan stating depleted global inventories make current prices seem permanent.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing