Global oil prices rose more than 2% on Friday to their highest levels since the end of April, as worries grew over a possible escalation of the Iran conflict after the US midterm elections. An attack on a tanker in the strategically vital Strait of Hormuz added to fears of supply disruptions.
Brent crude futures for December delivery, which expired on Friday, settled $2.76 higher, or 2.4%, at $117.64 a barrel after touching an intraday high of $118. The more actively traded January Brent contract gained $2.63 to settle at $113.43. US West Texas Intermediate (WTI) futures rose $2.12, or 2.08%, to close at $104.12 a barrel. For the month, Brent climbed 13.6% and WTI advanced 15.2%.
Dennis Kissler, Senior Vice President of Trading at BOK Financial, said traders would keep a close watch on oil shipments from the Middle East and the prospect of military escalation involving US and allied forces.
Fresh anxiety followed a report from the United Kingdom Maritime Trade Operations (UKMTO), the British maritime security agency, that a tanker in the Strait of Hormuz was hit on Friday by explosive devices attached by a small boat. Those responsible had not been identified at the time of reporting.
The Strait of Hormuz is a key global shipping route, carrying large volumes of crude oil and fuel from Gulf countries to world markets. Maritime sources said the incident was the first known successful limpet mine attack in the waterway since the US-Israeli conflict with Iran began in February. Such devices are attached to a vessel’s hull, usually by people operating from a small boat.
