Oil prices rise on potential US strikes in Iran before midterm elections

Oil prices surged on Thursday following reports of potential U.S. strikes against Iran before the upcoming midterm elections. The attacks by Iran on vessels in the Strait of Hormuz have been escalating, prompting concerns from the U.S. government. Brent crude, a benchmark for two-thirds of the world's oil, surged more than 2% to $102.20 a barrel, having previously dipped below $100 per barrel.

West Texas Intermediate, which tracks U.S. crude, rose 1.64% to $88.73 a barrel. While crude prices have remained above the $100 mark, the ongoing U.S. military campaign has been relatively quiet. President Trump, who is facing domestic criticism over the war, had previously stated that U.S. strikes would only resume after the midterms.

However, the recent surge in Iranian attacks on oil and gas tankers in the strait may alter this plan. The U.S. Defense Department reportedly identified targets for potential strikes before the polls. The scope of these strikes remains unspecified, but the U.S. could opt for a limited military operation followed by a more extensive campaign post-elections.

Traffic through the Strait of Hormuz, which accommodates a fifth of the world's oil and gas, has been minimal. Iranian attacks on tankers have reached their highest weekly rate since the conflict began on February 28. The number of vessels transiting the strait fell to its lowest level in over two months. In the most recent attack, a tanker north of Qatar was hit by multiple projectiles, resulting in casualties, according to the UK Maritime Trade Operations agency.