NEW YORK – Oil rose on signs the United States may resume military strikes against Iran, risking fresh turbulence in the region that may hurt energy flows.
West Texas Intermediate gained toward US$103 a barrel, after swinging more than US$3 in the previous session, while Brent settled near US$115.
A top commander briefed President Donald Trump on military options on Oct 29, the Wall Street Journal (WSJ) reported. The US leader has repeatedly given signals he may restart airstrikes against Tehran after midterm elections next week.
In Iran, one of the country’s top negotiators, Parliament Speaker Mohammad Bagher Ghalibaf, suggested the Islamic Republic’s positions on ending the war would not be compromised.
His remarks followed confirmation from Tehran that officials had received a letter sent by US Vice-President J.D. Vance, which the WSJ reported as a bid to revive the nations’ peace negotiations.
Global benchmark Brent has rallied 11% in October, hitting a six-month high, as the conflict has dragged on. The gains in October have come despite a revival of flows from the Middle East, with producers managing to ship cargoes through the Strait of Hormuz even with elevated risks to shipping.
The dangers were highlighted again as a tanker was struck by an unknown projectile while completing an outbound transit of Hormuz on Oct 29, according to UK Maritime Trade Operations.
Meanwhile, ExxonMobil Holdings and Chevron cancelled plans to attend the ADIPEC oil conference in Abu Dhabi in November amid heightened security concerns.
The US midterms – which will be held on Nov 3, halfway through Trump’s second term – determine control of Congress.
Ahead of the contests, national polls show that the war in Iran is unpopular, with many voters also unhappy about rising living expenses, including fuel costs. Average diesel prices have risen almost 80% in 2026, hitting a record in September.
In Israel, Prime Minister Benjamin Netanyahu and his allies secured 53 seats in the general election held this week, ahead of the main opposition’s bloc of 48 but short of a majority allowing them to rule without further backing. The country joined with the US to start the war against in Iran in late February with the stated aim of dismantling its nuclear programme.
The oil supermajors will wrap up a flood of earnings this week, with results from ExxonMobil and Chevron due later on Oct 30. Shell chief executive Wael Sawan said on Oct 29 that current oil prices no longer looked temporary because global inventories were so depleted. BLOOMBERG
