Brent Hits Highest Level Since 2022 as War Risks Escalate

Brent crude prices hovered near $96 per barrel on Friday after rising in the previous session, as President Donald Trump stated that the US no longer needs a deal with Iran, dampening hopes for a diplomatic resolution to the war. Trump also directed Vice President JD Vance to prioritize domestic matters over negotiations with Tehran. Meanwhile, Iran maintained its position that Washington must lift its naval blockade and sanctions against the country before any direct peace talks can take place. Mohsen Rezaee, secretary of Iran's Supreme National Security Council, further emphasized that Tehran has no intention of removing its enriched nuclear materials from the country. Despite these developments, oil prices remain on track for a second consecutive weekly decline as Middle Eastern crude exports continue to recover. Hopes for a faster resolution to the conflict have also been supported by a Democratic victory in the US midterm elections.

Brent crude rose to around $96 a barrel on Thursday, extending gains for a second consecutive session and rebounding from a ten-week low of $91.5 reached on November 10th. Prices climbed after US President Trump declared that the US no longer needs a deal with Iran. The remarks marked a sharp departure from Monday, when Trump described the war as "militarily effectively over" following talks with Qatar's prime minister. Meanwhile, Iran has shown little willingness to soften its negotiating position. Mohsen Rezaee, secretary of Iran's Supreme National Security Council, said Tehran would not remove any enriched nuclear material from the country. Despite the diplomatic uncertainty, Middle Eastern crude supplies have recovered considerably. Saudi Arabia reported a 26% increase in October production, while Iraq also raised output. However, shipments remain dependent on alternative routes, ship-to-ship transfers and military protection.

Brent crude rose above $94 a barrel on Thursday, extending gains for a second consecutive session as prices attempted to recover from a ten-week low of $91.5 on November 10. Investors weighed escalating tensions between Washington and Tehran against signs of recovering supply from Saudi Arabia. President Donald Trump said the US no longer needs a deal with Iran, signalling a shift away from recent diplomatic efforts. Tehran also maintained a hardline position, with senior official Mohsen Rezaee ruling out the removal of any enriched nuclear material from the country. Still, Saudi Arabia reported a 26% increase in oil production in October, bringing output to one of its highest monthly levels in years, while Iraq also raised production to a wartime record. Adding to supply-side pressure, EIA data showed US crude inventories rose by 4.657 million barrels in the week ended November 6, the largest increase since August and a reversal of five consecutive weekly declines.