Crude oil futures rise as US, Iran attack each other’s ships

Crude oil futures surged on Monday as the United States and Iran engaged in a clash over ships in international waters. By 10:02 am on Monday, November, Brent oil futures reached $97.14, a 0.89 percent increase, while October crude oil futures on West Texas Intermediate (WTI) rose to $92.37, a 0.97 percent increase. September crude oil futures on MCX were at ₹8712, up 1.56 percent from the previous close of ₹8578, and October futures were at ₹8445, a 1.40 percent rise from the prior close of ₹8328.

According to a statement from the US Central Command (CENTCOM), its forces attacked three Iranian crude oil carriers on September 5 after Iran fired ballistic missiles at two US Navy warships patrolling regional waters. Following Iran’s unsuccessful attacks, CENTCOM permanently crippled the IRGC crude oil carriers m.t. Downy off Kharg Island and m.t.

Stark 1 near Jask. Additionally, American forces entirely destroyed the unladen crude oil carrier m.t. Kylo (also known as the ‘Noxen’) in the Gulf of Oman, rendering it inoperable after the crew abandoned ship. CENTCOM Commander Adm Brad Cooper emphasized that the message to Iran was clear: "If you shoot at two of our ships, we will impose an even higher economic cost —taking out three of yours.

We will not hesitate to defend American forces, and if necessary, destroy Iran’s limited and exposed oil fleet." Warren Patterson, Head of Commodities Strategy at ING Think, and Ewa Manthey, Commodities Strategist, noted in their Commodities Feed for Friday that the oil market remains well-supported with little sign of a peace agreement between the US and Iran.

The US targeted several Iranian-linked tankers in response to Iran's attacks on US warships. Iran claims it has also taken action against unauthorized tankers, planning to enforce a new restricted zone outside the Strait of Hormuz, potentially putting more vessels in the Gulf of Oman at risk. Despite the heightened tensions, oil continues to flow, with the US energy secretary reporting that oil moving through the Strait of Hormuz averages over 9 million barrels a day, aided by US Navy escorts.

OPEC+ maintained its output quotas unchanged for October, though most members are expected to produce below quota due to ongoing disruptions in the Persian Gulf. September natural gas futures were at ₹278.10 on MCX during Monday's early trading, down 0.86 percent from the previous close of ₹280.50, while October turmeric (farmer polished) contracts were at ₹20566, up 0.80 percent from the prior close of ₹20402.

September cottonseed oilcake futures were at ₹2860 on NCDEX, a 0.63 percent increase from the previous close of ₹2842.