Oil prices rose on Friday, October 30, and are expected to post a fourth consecutive month of gains after an attack on a tanker in the Strait of Hormuz highlighted the continuing supply risks from the U.S.-Israeli war against Iran, now in its eighth month. UNN reports, citing Reuters.
Details
Brent crude futures for December delivery, which expire on Friday, rose by $1.20, or 1.04%, to $116.08 per barrel as of 3:23 GMT (5:23 a.m. Kyiv time). The more active January contract rose by $1.39 to $112.19.
U.S. West Texas Intermediate (WTI) crude futures rose by $1.37, or 1.34%, to $103.37.
During the month, Brent crude prices rose by nearly 11%, while WTI prices increased by 14%.
On Friday, a tanker in the Strait of Hormuz — a key maritime route for oil and fuel supplies from the Persian Gulf — was hit by explosive devices attached from a small vessel, UKMTO reported. The attackers have not yet been identified.
"Ongoing fighting in the Strait of Hormuz area, amid doubts about the viability of a diplomatic path, is keeping oil prices high as markets anticipate an escalation of the conflict in the coming weeks," said Saul Kavonic, head of energy research at MST Marquee.
On Thursday, the Houthis claimed attacks on several facilities in Saudi Arabia, including the largest oil refinery in Ras Tanura, the refinery in Rabigh and a production facility in Abqaiq owned by state-run Saudi Aramco, while the Saudi-led coalition said it had intercepted a cruise missile launched by the Houthis toward the kingdom's western region.
U.S. President Donald Trump said on Thursday, October 29, that Vice President J.D. Vance had asked Iran to help the country obtain medicines after U.S. media reported that Vance had written to Tehran's top security official asking him to resume peace talks.
Trump confirmed Vance’s outreach to Iran but said it concerned medical assistance29.10.26, 05:55
Iran received a letter from Vance but has not yet responded to it, the country's semi-official Tasnim news agency reported, adding that Tehran wants the United States to meet its conditions and that "any position contrary to these conditions is unacceptable."
Iran rejected Qatar's proposals to end the war with the United States - Reuters28.10.26, 17:56
Amid concerns about security in the Middle East, ExxonMobil and Chevron canceled plans for their executives to attend the United Arab Emirates' largest oil exhibition next week, two sources familiar with the situation told Reuters.
Price forecast
Oil prices could become even more volatile over the next couple of weeks because of Israel's parliamentary elections and the U.S. midterm congressional elections, Ole Hansen, head of commodity strategy at Saxo Bank, said at a media briefing in Singapore on Thursday.
Hansen said that heightened uncertainty makes price forecasting more difficult, but he expects oil to trade in a higher range of $70 to $90 per barrel compared with the prewar level of $60–70, even after the conflict ends, due to the risk of renewed hostilities and the need to replenish inventories.