Oil prices are on track for their fourth consecutive monthly gain as ongoing tanker attacks keep supply risks in the spotlight
Oil prices rose on Friday—marking a fourth straight month of gains—as attacks on tankers in the Strait of Hormuz reignited concerns over supply risks, which are already heightened by the eight-month-long conflict involving the U.S., Israel, and Iran.
Brent crude contracts for December delivery, set to expire on Friday, climbed $1.20 (1.04%) to $116.08 per barrel by GMT 03:23. The more actively traded January contracts rose by $1.39 to $112.19. Meanwhile, U.S. West Texas Intermediate (WTI) crude futures increased by $1.37 (1.34%) to reach $103.37.
Brent crude is on course to end October with a gain of approximately 11%, while WTI is set to finish the month up by 14%.
Ongoing military activity around the Strait of Hormuz and skepticism regarding potential diplomatic solutions are keeping oil prices elevated, amid expectations that the conflict could escalate further in the coming weeks.
A tanker transiting through the Gulf region was targeted by explosive devices planted from a small boat. It remains unclear who was behind the attack.
On Thursday, the Houthis announced that they had carried out attacks on several locations within Saudi Arabia. The Saudi-led coalition announced that it had intercepted a cruise missile launched by the Houthis toward the western region of the kingdom.
Reports in U.S. media alleged that Vance had sent a letter to a high-ranking Iranian security official in an effort to revive peace talks. On Thursday, Trump stated that Vice President-elect JD Vance had reached out to Iran regarding the provision of medical supplies.
Tehran confirmed receiving a letter from Vance but noted that it had not yet responded; it added that it expects the U.S. to meet its specific conditions, stating that "any stance that contradicts this framework is unacceptable."
Due to security concerns in the Middle East, ExxonMobil and Chevron have canceled plans for their executives to attend a major oil industry exhibition in the United Arab Emirates next week.
Given the parliamentary elections in Israel and the midterm congressional elections in the United States, further volatility in oil prices over the coming weeks is inevitable.
As the Northern Hemisphere enters the winter season, keeping crude oil prices in check remains highly challenging—even if current conflicts were to end—due to the risk of hostilities resuming and the ongoing need to replenish stockpiles.
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