US$104 oil returns with Iran tensions and hurricane risks mounting

Oil prices experienced a sharp increase of nearly four percent on Thursday, driven by heightened concerns over an escalation in the US-Iran conflict, according to German Press Agency (dpa). Brent crude prices rose by 4.1 percent to reach $104.32 per barrel, following reports from The Atlantic that the White House had asked the Pentagon to explore options for striking Iran prior to the midterm elections.

However, no final decision has been made yet. Meanwhile, WTI crude futures surged 4 percent to $91.83 per barrel, amid the threat of a hurricane named Isaias heading towards the US Gulf Coast, expected to become a hurricane by late Friday. Oil companies operating in the Gulf of Mexico have started to reduce production and evacuate personnel from offshore facilities.

The previous day, oil prices had risen on fresh concerns about West Asia supplies, but later fell after the International Energy Agency agreed to accelerate a planned release of oil stocks and prioritize diesel to curb record-high fuel prices. Additionally, there were seven commodity vessels passing through the Strait of Hormuz, the lowest number since July 23, following the highest level of attacks in the key waterway since the start of the US-Israeli conflict with Iran, according to data from analytics firm Kpler.

The US State Department has urged citizens to exercise heightened vigilance following Houthi strikes on two Saudi airports, which resulted in three deaths and 36 injuries.