Oil Nears Six-Month High as Risk of Conflict with Iran Resurges

Oil prices strengthened again on Friday (October 30), approaching their highest levels in six months. Brent crude reached $112.06 per barrel, while WTI hit $104.42 per barrel, as the prospect of potential new U.S. military action against Iran fueled concerns over supply disruptions. Brent had earlier touched its highest level since late April.

Market sentiment shifted after CENTCOM Commander Admiral Brad Cooper briefed President Donald Trump at the White House on military options regarding Iran. The meeting included Secretary of Defense Pete Hegseth and other senior officials; Trump had previously alluded to the possibility of further strikes following the U.S. midterm elections on November 3.

Meanwhile, diplomatic efforts remain underway. U.S. Vice President JD Vance has reached out to Iranian security official Mohsen Rezaei in an attempt to revive negotiations, and mediators are working to draft a framework for resolving the conflict. However, reports that Tehran has rejected the proposed settlement have cast doubt on the likelihood of reaching an agreement in the near term.

Geopolitical risks are further compounded by tensions around the Strait of Hormuz and attacks by the Iran-backed Houthi group. Saudi Arabia intercepted another ballistic missile launched toward the eastern part of the kingdom, following Houthi claims of an attack on the Ras Tanura refinery. These threats to energy infrastructure and trade routes continue to keep a risk premium embedded in oil prices.

On the supply side, data from the United States has provided additional support. U.S. commercial crude oil inventories fell by 1.9 million barrels for the week ending October 23—contrary to expectations of a slight increase. Newsmaker Analysis: The combination of conflict risks, diplomatic uncertainty, and a decline in U.S. inventories has kept bullish pressure on oil prices strong. As long as threats to supply persist, oil prices are likely to remain sensitive to any developments between the U.S. and Iran. (srh)

Source: Newsmaker.id