Oil prices climbed on Thursday, driven by escalating geopolitical risks in the Middle East that have reignited concerns over global energy supply stability. The advance follows reports that the United States is preparing for potential large-scale military operations against Iran in the coming weeks.
According to NBC News, President Donald Trump and his national security advisors have discussed the possibility of initiating major military actions against Iran, including the option of strikes prior to the midterm elections scheduled for next month. These developments have contributed to heightened volatility in energy markets.
International benchmark Brent crude futures for December delivery rose 1.36% to $101.54 per barrel. U.S. West Texas Intermediate (WTI) crude futures for November also gained, climbing 1.04% to $89.32 per barrel.
The broader regional tension has intensified due to recent aggression by Iran-backed Houthi forces. The group recently launched attacks against Saudi Arabia, including strikes on airports in the southern cities of Jazan and Najran. Additionally, Tehran has been targeting commercial tankers in the strategically vital Strait of Hormuz, a critical chokepoint for global oil shipments.
“Crude is likely to remain tied to the security of Gulf export routes and infrastructure,” said Inki Cho, a financial markets consultant at the online trading platform Exness. Cho warned that any further escalation impacting traffic through the Hormuz Strait or damaging Saudi energy facilities could threaten physical supply and push prices even higher.
The market anxiety comes against a backdrop of disrupted maritime trade following previous escalations between the U.S., Israel, and Iran, which had previously led to the closure of the Strait of Hormuz. In response to earlier disruptions, Iraq had resumed exporting crude oil via overland tankers to Syria’s Mediterranean coast, marking the first time in 15 years such a route has been utilized under a bilateral agreement.
Houthi attacks on airports are terrifying. My cousin is in Jazan; hope everyone stays safe.
Trump planning strikes before midterms? That sounds like classic political maneuvering over economic stability.
Is Iraq’s new pipeline route actually viable? Seems like a stopgap, not a real fix.
Strait of Hormuz is the real wildcard here. If that closes again, we are in deep trouble.
$101 for Brent is brutal for my commute. Hope they find a diplomatic solution soon.