Oil prices rise as M.East tensions fuel fears of supply disruptions

Oil prices increased early Thursday as Middle East tensions persisted, causing concerns over potential supply interruptions, while a significant drawdown in U.S. inventories also contributed to the rise in crude. Brent oil futures for December climbed 1.1%, reaching $110.02 per barrel by 8:16 PM ET (4:16 AM GMT), while West Texas Intermediate futures rose 0.9% to $98.05 per barrel.

This surge in oil prices occurred shortly after a New York Times report revealed that the United States and Israel were plotting to intensify attacks on Iran following the U.S. midterm elections on November 3. The plan involved striking Iran's energy infrastructure, nuclear facilities, and arsenal, with military preparations escalating in both nations.

Iran declared it would respond harshly to any further U.S. aggression, threatening attacks on Saudi oil refineries, data centers, and undersea internet cables. The country had also stepped up assaults on shipping through the Strait of Hormuz in recent weeks. President Donald Trump has postponed potential strikes against Iran, advocating for no new hostilities before the midterm elections, as he and the Republican party face a tough race amid public discontent over soaring costs of living.

Trump recently signed a major diesel supply deal with Russia to address domestic shortages, and indicated openness to a three-way summit with China and Russia to address the Russia-Ukraine conflict. Reports of Ukrainian attacks on Russian energy infrastructure were also cited as a factor tightening supplies and inflating prices.

Notably, official U.S. figures released on Wednesday revealed a larger-than-anticipated decrease of 3.1 million barrels in crude inventories during the week of October 16.