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Brent crude hits five-month high as Iran prepares for warfare
Brent crude hit a five-month high as Iran prepares for warfare and U.S. President Donald Trump accuses Tehran of manipulating oil prices.
Key points
- Brent crude futures climbed 0.47% to $110.07 a barrel, reaching levels not seen since May 20.
- Houthis claimed to have launched attacks on Saudi targets including an Aramco site in Yanbu and the Shaybah oilfield.
- Shiptracker Kpler reported that at least 18 vessels were reportedly attacked over a two-week period.
Why it matters. Geopolitical volatility and attacks on energy infrastructure could maintain a risk premium in oil prices if flows are inhibited.
Brent crude futures trended toward a 3.3% weekly rise on Thursday, reaching their highest levels since early May. President Donald Trump claimed on Truth Social that Iran is fabricating attacks in the Strait of Hormuz to inflate oil prices before the U.S. Midterm Election. The Islamic Revolution Guards Corps reported seven vessels were hit by mines or caught fire, while Saudi Aramco ordered staff to evacuate its Dhahran headquarters due to Houthi rebel strikes.
Latest updates
Brent crude hits five-month high as Iran prepares for warfare
Brent crude futures are on track for their third consecutive weekly rise, gaining 3.3% to reach a five-month high. The price surge follows statements from Iran indicating readiness for warfare. US President Donald Trump accused Iran of attempting to manipulate the global oil market on Thursday. Meanwhile, WTI futures showed a different weekly trend despite the geopolitical tension.
Brent crude holds near five-month high on Middle East tension
Brent crude futures climbed 52 cents, or 0.47%, to $110.07 a barrel by 0628 GMT, after rising as high as $110.70 a barrel in the previous session. Oil prices advanced on Tuesday, with Brent hovering around a five-month high as traders priced in a geopolitical risk premium from Houthi attacks on Saudi infrastructure and reports of vessel attacks in the Gulf.Brent crude futures climbed 52 cents, or 0.47%, to $110.07 a barrel by 0628 GMT, after rising as high as $110.70 a barrel in the previous session to their highest since May 20.The US West Texas Intermediate crude (WTI) contract for November delivery, set to expire on Tuesday, was up 0.36% to $104.03. The more-active December contract rose 26 cents, or 0.26%, to $98.80.Also Read | S&P 500, Nasdaq rise as AI stocks rebound and oil prices ease ahead of major US company earnings this week"Oil prices remain well-supported ... This suggests the market is pricing in a significant risk premium, given the situation's volatility," ING analysts said in a note on Tuesday.“However, if flows continue uninhibited despite the geopolitical environment, the risk premium would likely erode slowly. Clearly, there are no signs of this yet.” At least 18 vessels were reportedly attacked over two weeks, which keeps the risk premium intact, shiptracker Kpler said in a note on Monday.Houthis claim attacks on Saudi facilitiesYemen's Iran-aligned Houthi.
Brent crude holds near five-month high at $110 on Middle East tension
Oil prices advanced on Tuesday, with Brent crude hovering around a five-month high as traders factored in a geopolitical risk premium from escalating Middle East tensions. Brent futures climbed 52 cents, or 0.47 percent, to $110.07 a barrel by 0628 GMT, after touching $110.70 in the previous session. The price surge follows Houthi attacks on Saudi infrastructure and reports of vessel attacks in the Gulf region. Market participants are concerned about potential supply disruptions from key oil-producing areas. Analysts said the risk premium could persist as long as attacks on energy infrastructure continue. The elevated prices come despite broader concerns about global demand growth. Energy traders are closely monitoring shipping routes and regional security developments for further signals.