Global oil prices climbed more than 2% on Friday, reaching their highest levels since the end of April, as concerns mounted over a possible escalation of the Iran conflict following the US midterm elections. An attack on a tanker in the strategically important Strait of Hormuz further heightened fears over potential disruptions to global oil supplies.
Brent crude futures for December delivery, which expired on Friday, settled $2.76 higher, gaining 2.4% to reach $117.64 a barrel after touching an intraday high of $118. The more actively traded January Brent contract also advanced by $2.63 to settle at $113.43.
Meanwhile, US West Texas Intermediate (WTI) crude futures increased by $2.12, or 2.08%, to close at $104.12 a barrel.
For the month, Brent crude recorded a gain of 13.6%, while WTI advanced by 15.2%.
Dennis Kissler, Senior Vice President of Trading at BOK Financial, said market participants would continue closely monitoring oil shipments from the Middle East and the possibility of military escalation involving US and allied forces.
Fresh concerns emerged after a tanker in the Strait of Hormuz was struck by explosive devices attached by a small boat on Friday, according to the United Kingdom Maritime Trade Operations (UKMTO), the British maritime security agency.
The identity of those responsible for the incident had not been established at the time of reporting.
The Strait of Hormuz is a critical international shipping route through which substantial volumes of crude oil and fuel supplies from Gulf countries are transported to global markets.
Maritime sources said the incident marked the first known successful attack using limpet mines in the waterway since the US-Israeli conflict with Iran began in February. Such explosives are attached to a vessel’s hull, typically by individuals operating from a small boat.
