Oil prices rose on Friday, heading for a fourth consecutive month of gains, as investors prepare for the possibility of escalating conflict between the United States and Iran following the US midterm elections, while an attack on a tanker in the Strait of Hormuz highlighted supply risks stemming from this conflict.
Reuters reported that Brent crude futures rose by $2.27, or 1.98 percent, to $117.15 per barrel, while the most actively traded January Brent contract increased by $2.19 to $112.99 per barrel. US West Texas Intermediate crude futures rose by $1.79, equivalent to 1.75 percent, to $103.79.
On a monthly basis, Brent crude is heading for a 13 percent gain and US crude a 15 percent gain. Ole Hansen, head of commodities strategies at Saxo Bank, said, "The oil market is witnessing growing anxiety as the midterm elections approach," noting that many investors and analysts expect US attacks on Iran to resume after the elections.
For his part, Sol Kavonitch, head of energy research at MSCI Markit, stated that "continued military operations at the Strait of Hormuz amid doubts about the existence of a viable diplomatic track keep oil prices high in anticipation of conflict escalation in the coming weeks." The UK Maritime Trade Operations agency earlier confirmed that a tanker was attacked with explosives mounted on a small boat in the Strait of Hormuz, with no party yet identified as responsible for the attack.
Source: Syrian Arab News Agency (SANA)
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