Oil Prices Rise as Hormuz Tanker Attack Fuels Supply Concerns

Oil prices rose on Friday. Crude benchmarks were heading for a fourth consecutive monthly gain. A tanker attack in the Strait of Hormuz renewed fears of supply disruptions.

The concerns come amid the US-Israeli war on Iran, which has entered its eighth month.

December Brent crude futures expire on Friday. They gained $1.20, or 1.04%, to reach $116.08 per barrel at 0323 GMT. The more active January contract rose $1.39 to $112.19.

US West Texas Intermediate (WTI) crude also advanced. It gained $1.37, or 1.34%, to reach $103.37 per barrel.

For October, Brent was heading towards an increase of nearly 11%. WTI was on course to gain around 14%, according to Reuters.

Tanker Attack Raises Strait of Hormuz Risks

The United Kingdom Maritime Trade Operations (UKMTO) reported an attack on a tanker in the Strait of Hormuz on Friday.

Explosive devices attached to a small boat struck the vessel. Authorities had not immediately identified those responsible.

Pakistan’s Foreign Reserves Rise by $33 Million to $21.52 Billion

The Strait of Hormuz is a vital route for Gulf crude oil and fuel shipments. Any disruption could threaten global energy supplies.

Saul Kavonic, head of energy research at MST Marquee, linked the price rise to continued regional fighting.

He said doubts over diplomacy were also keeping oil prices elevated. He warned that the conflict could escalate in the coming weeks.

Houthi Claims Add to Regional Energy Concerns

Regional tensions also increased on Thursday. Yemen’s Houthis claimed attacks on several Saudi energy facilities.

The group named the Ras Tanura and Rabigh refineries. It also claimed to have targeted an Aramco production facility in Abqaiq.

Separately, a Saudi-led coalition reported intercepting a cruise missile. The missile was reportedly heading towards the kingdom’s western region.

These developments added to concerns over energy infrastructure. They also raised questions about the security of key shipping routes.

US-Iran Diplomatic Contacts Remain Uncertain

Diplomatic developments remained another focus for traders. US President Donald Trump said Vice President JD Vance had contacted Iran.

Trump said the contact aimed to help Iran obtain medical supplies. The remarks followed reports of a letter from Vance to Iran’s top security official.

The reported letter sought to revive peace talks. Iran has received it but has not yet responded, according to the semi-official Tasnim news agency.

The agency said Tehran wants Washington to meet its conditions. It added that Iran considers other positions unacceptable.

Meanwhile, ExxonMobil and Chevron cancelled plans for executive travel to the UAE. Their executives had been due to attend the country’s biggest oil exhibition next week.

Two sources familiar with the decision confirmed the cancellations to Reuters.

Analysts Warn of Further Oil Market Volatility

Market uncertainty could increase over the coming weeks. Investors are watching political developments and regional security risks.

Ole Hansen, head of commodity strategy at Saxo Bank, warned of further volatility. He pointed to Israel’s parliamentary election and the US midterm congressional vote.

Hansen said the uncertainty made price forecasts difficult. However, he expects crude to trade between $70 and $90 per barrel after the conflict ends.

That range remains above pre-war levels of $60 to $70 per barrel. Hansen cited the risk of renewed hostilities and the need to replenish inventories.

Traders are now watching developments around the Strait of Hormuz. They are also monitoring regional energy facilities and prospects for renewed US-Iran diplomacy.