Brent crude futures climbed above USD 111 a barrel on Thursday, supported by growing concerns over a fresh escalation in the Middle East conflict. US West Texas Intermediate crude also rose, trading near USD 99 a barrel.
Traders reacted to reports that the United States and Israel may be preparing renewed strikes on Iran after the US midterm elections. The possibility of military action has added a strong geopolitical risk premium to global oil prices.
Fresh attacks on Saudi Arabia’s energy infrastructure have intensified market anxiety. Houthi forces have also targeted vessels near the Strait of Hormuz, a vital route for global crude shipments.
The attacks have raised concerns that oil exports from the Gulf could face disruption. Any threat to shipping through Hormuz can quickly lift freight, insurance and crude prices, as markets price in the risk of supply interruptions.
Reports suggest that US and Israeli militaries have drawn up plans for possible renewed strikes on Iran. Markets are treating the reports as a sign that diplomatic efforts may not be enough to prevent further escalation.
Investors are watching for any Iranian response, particularly action that could affect regional energy facilities or tanker traffic. The uncertainty has kept traders cautious and encouraged short-term buying in crude futures.
The geopolitical rally comes at a time when US crude inventories have fallen more than expected. Lower stockpiles have reinforced concerns that the market has limited buffers if supply is disrupted.
Oil prices had already touched a five-month high earlier this week. Thursday’s gains show that traders remain focused on the risk of a broader conflict rather than on signs of easing tensions.
For now, geopolitical risk remains the dominant driver of crude prices. Brent’s move above USD 111 reflects a market preparing for the possibility of further disruption in one of the world’s most important oil-producing regions.
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