Oil prices surge as Hormuz attack fuels supply fears

Summary

• Oil prices surged on Friday, heading for a fourth consecutive monthly gain as fresh security threats in the Strait of Hormuz intensified concerns over global energy supplies amid the ongoing US-Israeli war on Iran.
• The incident has raised fresh concerns about the safety of one of the world’s most important energy shipping routes, which serves as a major passage for crude oil and fuel exports from the Gulf.
• Saul Kavonic, head of energy research at MST Marquee, said continued military activity around the strait and uncertainty over diplomatic efforts were keeping oil prices high.

AI Generated Summary

Oil prices surged on Friday, heading for a fourth consecutive monthly gain as fresh security threats in the Strait of Hormuz intensified concerns over global energy supplies amid the ongoing US-Israeli war on Iran.

Brent crude futures for December delivery rose $1.20, or 1.04%, to $116.08 per barrel by 0323 GMT. The January contract, which is more actively traded, gained $1.39 to reach $112.19. Meanwhile, US West Texas Intermediate (WTI) crude climbed $1.37, or 1.34%, to $103.37 per barrel.

Both benchmarks remained on track for substantial monthly gains. Brent was set to close October nearly 11% higher, while WTI was heading towards a 14% increase.