Oil prices climbed more than 2% on Friday, with Brent crude settling at its highest level since late April, after an attack on a tanker in the Strait of Hormuz heightened concerns about potential disruptions to global energy supplies amid the ongoing conflict involving Iran.
Brent crude futures for December delivery, which expired on Friday, gained $2.76, or 2.4%, to settle at $117.64 a barrel, after touching $118. The more actively traded January contract advanced $2.63 to $113.43.
US West Texas Intermediate (WTI) crude rose $2.12, or 2.08%, to close at $104.12 a barrel.
For October, Brent gained 13.6%, while WTI recorded a 15.2% increase.
Tanker Attack Raises Strait of Hormuz Concerns
The latest market concerns followed an attack on a tanker in the Strait of Hormuz, where a small boat reportedly attached explosive devices to the vessel’s hull, according to the United Kingdom Maritime Trade Operations (UKMTO).
Authorities had not immediately identified those responsible for the incident.
Maritime sources described it as the first known successful attack involving limpet mines in the waterway since the US-Israeli war with Iran began in February.
The Strait of Hormuz serves as a major shipping route for crude oil and fuel exports from the Gulf. Any disruption to maritime traffic through the waterway could therefore affect global energy supplies and intensify price volatility.
Gold Prices in Pakistan Drop by Rs5,100 per Tola
“Traders will remain focused on oil flows out of the Middle East and the likely escalation by US and allied forces,” said Dennis Kissler, senior vice president of trading at BOK Financial.
Houthi Claims and Security Concerns in Saudi Arabia
Security concerns have also extended to Saudi Arabia’s energy infrastructure.
Yemen’s Iran-aligned Houthi group said on Thursday that it had targeted several sites in the kingdom, including the Ras Tanura and Rabigh refineries and a production facility in Abqaiq operated by Saudi Aramco.
Meanwhile, a Saudi-led coalition said it had intercepted a cruise missile launched towards the kingdom’s western region.
The United States also ordered non-emergency government employees and their families to leave Saudi Arabia effective October 23. Washington cited security risks linked to attacks on civilian airports and critical infrastructure.
Diplomatic Efforts Continue Between Washington and Tehran
Despite heightened tensions, diplomatic efforts to ease the conflict continued.
Qatari mediators returned to Tehran on Friday as part of coordinated efforts to reach an agreement between Washington and Tehran.
US President Donald Trump said Vice President JD Vance had contacted Iran regarding the provision of medical supplies.
Iran’s semi-official Tasnim news agency reported that Tehran had received a letter from Vance but had not responded. The report added that Iran wanted Washington to meet its conditions before negotiations could move forward.
Oil Market Outlook Remains Uncertain
Oil markets could remain volatile in the coming weeks as traders assess the possibility of further military escalation and political developments, including the November 3 US midterm elections.
A briefing by Saxo Bank said crude prices could trade between $70 and $90 a barrel even after the conflict ends, compared with the prewar range of $60 to $70.
The outlook reflects uncertainty over how quickly energy supplies and shipping routes could return to normal following the conflict.
Saudi Crude Exports Increase in October
Despite regional security concerns, Saudi Arabia’s crude exports increased in October compared with September, according to two of three ship-tracking companies.
The increase highlights the contrasting developments facing global oil markets, where higher export volumes have coincided with growing concerns over shipping security and the risk of supply disruptions.
