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 levels since the end of April, as traders anticipated a potential escalation in the Iran conflict following the U.S. midterm elections. The incident was further fueled by an attack on a tanker in the Strait of Hormuz, which heightened concerns about supply risks. Brent crude futures for December, which expired on Friday, rose $2.76, or 2.4%, to $117.64 per barrel, following a peak of $118.

Meanwhile, the more actively traded January contract increased by $2.63 to reach $113.43. U.S. West Texas Intermediate (WTI) crude futures also climbed $2.12, or 2.08%, to $104.12. Over the course of the month, Brent finished 13.6% higher, while WTI gained 15.2%. Dennis Kissler, senior vice president of trading at BOK Financial, noted that traders would continue to monitor oil flows from the Middle East and the likelihood of a possible intensification of U.S. and allied military actions.

On Friday, a tanker in the Strait of Hormuz was struck by explosive devices attached by a small boat, though the perpetrator of the attack remained unidentified. The Strait of Hormuz serves as the critical sea passage for global oil shipments from the Gulf region.