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

Oil prices surged on Thursday following reports of potential US military strikes on Iran, which could occur before the upcoming midterm elections as Iran continues to target vessels in the Strait of Hormuz. Brent crude, the benchmark for two-thirds of the world's oil, surged more than 2% to $102.20 a barrel, after briefly dipping below $100 earlier in the week.

West Texas Intermediate, tracking US crude, rose 1.64% to $8.73 a barrel. Despite a lull in the US military campaign, crude prices have remained above the $100 per barrel mark. US President Donald Trump, under pressure domestically, has indicated that the US will resume strikes only after the midterms. Reports from The Atlantic suggest the Pentagon is identifying targets for potential attacks in Iran, though the scale of any strikes remains undetermined.

The US may opt for a limited operation followed by a larger campaign after the polls. Traffic through the Strait of Hormuz, through which a fifth of the world's oil and gas passes, has been minimal, with attacks on tankers reaching their highest weekly rate since the conflict began in February. Tanker traffic fell to its lowest in over two months, according to shipping data from Kpler.

Seven commodity ships passed through the strait on Tuesday, the lowest count since July 23. In the latest incident, a tanker north of Qatar was hit by multiple projectiles, resulting in casualties, according to the UK Maritime Trade Operations agency.