Oil prices surge as tanker attacks in Hormuz and US-Iran tensions rattle markets

Global crude benchmarks climbed more than 2% on Friday, steering oil toward its fourth consecutive monthly advance amid escalating maritime incidents in the Middle East and concerns over renewed American military action against Iran.

International standard Brent crude gained 2.37% to reach $117.56 per barrel, while US benchmark West Texas Intermediate advanced 2.13% to trade at $104.17 per barrel. Across the full month, Brent was poised to record a rise of roughly 15%, with WTI projected to gain approximately 12%. On a weekly scale, Brent was positioned for a 0.64% increase and WTI tracked an uptick of nearly 1%.

The market reaction followed back-to-back attacks on commercial vessels in critical shipping lanes. Iran's Islamic Revolutionary Guard Corps stated that a tanker struck a naval mine on Friday after navigating an unapproved passage through the Strait of Hormuz. That incident came after a separate vessel sustained damage on Thursday evening. While initial accounts suggested a projectile was involved in the Thursday strike, the United Kingdom Maritime Trade Operations confirmed that explosives had been fixed to the ship's hull by occupants of a small boat.

Geopolitical tensions were further stoked by statements from Washington regarding the nine-month-old conflict with Tehran. US President Donald Trump stated on Friday that he anticipated the war would conclude in the near future, though he offered no specifics on how that outcome would be reached. With vital US midterm elections approaching on November 3, traders remained watchful, particularly as Trump had previously indicated that Washington would hold off on hitting Iranian targets until after the vote.

The prospect of imminent post-election strikes continued to weigh heavily on trading desks. Market analysts noted that concerns over potential American strikes maintained upward momentum on prices, sustaining elevated supply risk premiums even as diplomatic channels remained active.

Diplomatic initiatives continued in the background despite the volatility. Mediators from Qatar arrived back in Tehran on Friday to pursue ongoing efforts toward an agreement between Washington and Tehran, an official familiar with the discussions told Reuters. While Iranian authorities did not issue an immediate public reaction to the circulating proposal, an Iranian official informed The National that Tehran is open to diplomatic endeavors, discussions, and joint consultations.