Oil Prices Rise Amid Potential Washington-Tehran Tensions Following US Elections

Oil prices rose today, heading toward gains for the fourth consecutive month amid investor concerns over potential escalating tensions between Washington and Tehran following the US midterm elections. An attack on a tanker in the Strait of Hormuz highlighted the risks to oil and fuel supplies from the Gulf region. By 13:39 Moscow time, December futures for Brent crude rose 2.62% to $117.40 per barrel, reaching their highest level since April 30 after surpassing $118 per barrel. Meanwhile, December futures for West Texas Intermediate crude increased 1.99% to $104.03 per barrel. On a monthly basis, Brent is set to gain about 13%, and the US crude about 15%. Oli Hansen, head of commodity strategy at Saxo Bank, noted growing market anxiety as the US elections approach, with expectations of renewed US attacks on Iran post-election. The UK Maritime Trade Operations reported a tanker attack involving explosive devices attached to a small boat in the Strait of Hormuz, a vital waterway for oil supplies, with the responsible party yet unidentified. Sole Kavonich, head of energy research at MST Markey, stated that ongoing military actions in the Strait of Hormuz amid doubts over a diplomatic solution keep oil prices elevated, anticipating conflict escalation in the coming weeks.