Brent Ends October Up 13.6% Near $118 as Hormuz Tanker Strike and Houthi Attacks Stoke Iran War Fears

Oil prices closed October with their sharpest monthly jump in months as fears grew that the Iran war could widen. Brent crude rose 13.6% over the month and WTI 15.2%, according to market reports.

On Friday, 30 October, the expiring December Brent contract settled at $117.64 a barrel, up $2.76, after touching $118 during the day. The more actively traded January contract ended at $113.43. US benchmark WTI settled at $104.12, up $2.12. Both benchmarks finished at their highest levels since the end of April.

What pushed prices up

• Tanker attack in Hormuz: The UK Maritime Trade Operations (UKMTO) said a tanker in the Strait of Hormuz was hit by limpet mines attached from a small boat. Who carried out the attack is unclear. Reuters sources described it as the first known successful limpet-mine strike in the strait since the war began in February.
• Houthi claims on Saudi sites: Yemen’s Houthi militants said they had targeted Saudi facilities on 29 October, including the Ras Tanura and Rabigh refineries and an Aramco site at Abqaiq. A Saudi-led coalition said it intercepted a Houthi cruise missile.
• US election risk: Traders are watching for a possible escalation after the US midterm elections on 3 November. The US embassy in Riyadh has also told non-emergency staff to leave Saudi Arabia, citing Houthi threats.

Diplomacy and outlook

Qatari mediators returned to Tehran on 30 October in an effort to broker a US–Iran agreement. Analysts quoted in market reports see crude heading towards $120 if attacks on shipping intensify, but easing towards $80 if exports normalise.

For India, which imports most of its crude, sustained prices at these levels would add pressure on the import bill, inflation and fuel costs.

Featured image: The Strait of Hormuz seen from space (NASA). Photo: NASA, Public domain (source).

Sources

• Brent ends October up 13.6% as Iran war risks unsettle markets – The Nation Thailand
• Crude oil prices jump 14% in October as Iran tensions raise supply fears – Kotak Neo