Oil Tops $103 on Fears of Renewed US-Iran Strikes

Crude oil rose above $103 a barrel on Friday as expectations grew that the US could resume strikes against Iran in the coming weeks. US President Trump said Wednesday that Washington was not negotiating with Tehran and that something would happen “fairly soon.” Reports indicate that the US and Israel are planning fresh strikes on Iran after the midterm elections. Meanwhile, Iran’s army chief said the country’s military was fully prepared for “asymmetric warfare” after strengthening its capabilities. Iran-allied Houthi militants have continued attacks on Saudi Arabia, prompting the US State Department to order non-essential personnel to leave the country. Oil giant Saudi Aramco also instructed staff to evacuate its Dhahran headquarters and work remotely following a series of attacks. On the week, crude prices rose more than 1.5%.

Crude oil rose above $102 a barrel on Friday, the highest in five weeks, as expectations grew that the US could resume strikes against Iran in the coming weeks. Prices have gained around 3% this week, marking a third consecutive weekly advance. Iran’s army chief said the country’s military was prepared for asymmetric warfare after strengthening its capabilities. Meanwhile, President Donald Trump said Washington was not negotiating with Tehran and suggested that developments could occur soon. US and Israeli officials have reportedly drawn up plans for renewed strikes after the US midterm elections. Regional tensions have also intensified as Iran-aligned Houthi militants continue attacks on Saudi Arabia. The US State Department ordered non-essential personnel to leave the country. Saudi Aramco has also reportedly instructed staff to evacuate its Dhahran headquarters and work remotely.

Crude oil climbed above $101 per barrel on Friday, trading near its highest level in five weeks as escalating Houthi attacks on Saudi targets and reports of possible renewed US strikes against Iran raised supply risks in the Middle East. Iran-backed Houthi militants in Yemen claimed responsibility for recent attacks on Saudi Arabia’s Red Sea port of Yanbu, along with deadly strikes targeting an oil field and an airport in the world's largest crude oil exporter. Meanwhile, US and Israeli militaries have reportedly drawn up plans for renewed attacks after next month’s midterm elections, with Iran’s energy infrastructure likely to be a key target. Despite escalating regional tensions and threats to shipping through the Strait of Hormuz, crude exports from the Persian Gulf have rebounded close to prewar levels. In Europe, Ukraine intensified its attacks on Russian refineries this week amid a US-Russia agreement involving diesel supplies.