Oil jumps 2%, settles at 6-month highs on fears of escalation in Iran

Oil prices surged more than 2% on Friday, reaching their highest point since early May, as traders anticipated possible escalation in the Iran conflict following the U.S. midterm elections, according to a report by CNA. Brent crude futures for December settled up $2.76, or 2.4%, at $117.64 per barrel, after peaking at $118. The January contract rose $2.63 to $113.43.

US West Texas Intermediate (WTI) crude futures increased $2.12, or 2.08%, to $104.12. For the month, Brent rose 13.6%, while WTI climbed 15.2%. Dennis Kissler, senior vice president of trading at BOK Financial, noted that traders will focus on oil flows from the Middle East and potential U.S. and allied force escalation. A tanker in the Strait of Hormuz was attacked by explosive devices on Friday, according to the UK Maritime Trade Organization, though the assailant's identity remained unclear.

This marks the first successful strike using limpet mines in the waterway since the U.S.-Iranian war began in February. The U.S. ordered non-emergency government employees and their families to leave Saudi Arabia due to safety risks from Houthi attacks on civilian infrastructure. The Houthis claimed attacks on Saudi oil refineries and a production facility owned by Saudi Aramco.

The U.S. sees potential for increased oil volatility due to upcoming elections in Israel and the U.S. on November 3.