Oil prices jump more than 2% as Strait of Hormuz attacks revive supply fears

Oil prices climbed sharply on Friday, October 30, as fresh attacks on commercial tankers near the Strait of Hormuz renewed concerns over Middle Eastern supply disruptions, overshadowing diplomatic efforts to end the regional conflict.

Crude recovered from Thursday's losses, with investors increasingly concerned that prolonged instability could restrict exports from the Persian Gulf and keep energy prices elevated.

Price overview

Brent crude futures rose 2.26% to $113.30 a barrel, while US West Texas Intermediate (WTI) crude futures advanced 1.96% to $104.00 a barrel.

Brent traded between $111.03 and $114.06, while WTI fluctuated between $102.45 and $104.98.

Strait of Hormuz tensions intensify

Fresh reports of tanker attacks near the Strait of Hormuz heightened fears of further disruptions to one of the world's most important oil shipping routes.

Iran's Revolutionary Guards claimed that three tankers had struck sea mines, although the circumstances remained disputed.

Meanwhile, renewed threats against Saudi energy infrastructure added to concerns over regional production and export capacity.

Diplomatic uncertainty supports prices

Oil had retreated on Thursday following reports of renewed US-Iran diplomatic efforts.

However, uncertainty over the negotiations and continuing attacks on shipping routes have limited expectations of a sustained reduction in geopolitical tensions.

US inventories tighten

American crude inventories declined by approximately 1.9 million barrels last week, providing additional support to prices.

The drawdown contrasted with expectations of a modest increase, although rising gasoline inventories indicated uneven demand conditions.

Monthly gains remain substantial

Brent is heading toward an October gain of nearly 11%, while WTI is on course to advance approximately 14%.

The rally reflects persistent supply concerns despite the prospect of higher borrowing costs and slower global growth.

Market outlook

Brent faces resistance near $114.06, with support around $111.03. WTI could test $104.98, while immediate support stands near $102.45.

Further disruptions around the Strait of Hormuz could sustain the rally into November.