Crude oil prices continued their upward march on Friday, with Brent crossing $115 a barrel as attacks on Saudi energy infrastructure and mounting risks to shipping in the Gulf heightened fears of supply disruptions. The benchmarks were also heading for their fourth consecutive monthly rise, with US crude poised to settle above $100 for the first time since April.Brent futures gained 86 cents, or 0.75 per cent, to $115.74 a barrel by 0122 GMT, while US West Texas Intermediate (WTI) rose 72 cents, or 0.71 per cent, to $102.72.Brent was on course for a nearly 14 per cent gain in October, while WTI was set to jump around 15 per cent. Both were heading for their sharpest monthly increases since July.The latest escalation came on Thursday, when Yemen’s Iran-aligned Houthi group claimed attacks on key Saudi oil installations, including the Ras Tanura and Rabigh refineries and an Aramco facility in Abqaiq. A Saudi-led coalition separately reported intercepting a cruise missile launched towards the kingdom’s western region.The developments have heightened concerns over the security of energy infrastructure and shipping routes at a time when prospects for a diplomatic breakthrough remain uncertain.“Continued kinetic action around the Strait of Hormuz amidst doubts of a viable diplomatic pathway are keeping oil prices elevated in expectation of an escalation of the conflict in coming weeks,” said Saul Kavonic, head of energy research at MST Marquee.The Strait of Hormuz remains a major source of concern for energy markets, with any disruption to traffic through the waterway threatening to constrain global oil supplies.
Peace overtures fail to ease tensions
Efforts to reopen diplomatic channels between Washington and Tehran have yet to provide markets with reassurance.US President Donald Trump said on Thursday that Vice President JD Vance had contacted Iran to help it obtain medical supplies. This followed US media reports that Vance had written to Iran’s top security official in a bid to restart peace negotiations.Iran has received the letter but has not responded, the semi-official Tasnim news agency reported. Tehran is insisting that Washington accept its conditions, the agency said, quoting the Iranian position that “any position that contradicts this framework is unacceptable.”At sea, Iran’s Revolutionary Guards reported that three tankers had hit sea mines, exploded and caught fire while attempting to use an unauthorised route south of the Strait of Hormuz. The report added to the security concerns surrounding maritime traffic in the region.The heightened risks are also prompting changes to corporate travel plans. ExxonMobil and Chevron have cancelled plans for their executives to attend the United Arab Emirates’ biggest oil show next week, two sources familiar with the matter told Reuters.With crude prices already recording substantial monthly gains, traders are watching for signs that the conflict could further disrupt oil production or transportation. The trajectory of diplomatic efforts and the security of key energy routes are likely to remain central to market sentiment.
