Oil prices climbed on reports the U.S. may resume military strikes on Iran after the midterm elections, while traders watched a tight Israeli election. Brent crude rose toward $116 a barrel, and West Texas Intermediate traded above $101. The U.S. has advised Gulf nations to prepare for a short, intense campaign, though President Trump has not yet decided.
In Israel, exit polls showed opposition leader Gadi Eisenkot’s bloc tied with Prime Minister Benjamin Netanyahu’s, raising the possibility of another election. Warren Patterson of ING Groep NV noted the market is pricing in a higher probability of re-escalation. Global crude benchmarks have nearly doubled this year amid ongoing conflict.
Trump has sent additional forces, including a third carrier group, to the Persian Gulf. Meanwhile, Saudi infrastructure was targeted again by Iran-backed Houthi rebels, and Iran threatened legal action against Sinokor for alleged violations in the Strait of Hormuz. U.S. crude stockpiles fell by 2 million barrels, per the American Petroleum API.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing