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

Oil prices surged over 2% on Friday, reaching their highest level in six months, as traders anticipated potential conflict in Iran following the U.S. midterm elections. The incident was sparked by an attack on a tanker in the Strait of Hormuz, which highlighted supply risks. Brent crude futures closed at $117.64 per barrel, while U.S. WTI crude finished at $104.12 a barrel. Over the week, Brent rose 0.8%, and WTI increased by the same margin.

Traders were concerned about an attack on a tanker in the Strait of Hormuz, a critical sea route for Gulf crude. The identity of the attacker remained unclear, but the incident raised safety concerns. The U.S. ordered non-emergency government employees and their families to leave Saudi Arabia due to potential threats from Houthi attacks on civilian infrastructure.

Asian spot liquefied natural gas (LNG) prices surged to a multi-year high on Mideast tensions. Buying interest in Asian markets was driven by geopolitical uncertainties and expectations of stronger winter demand. The average LNG price for December delivery into northeast Asia reached $32.50 per million British thermal units, up from $30.50 per mmBtu the previous week.

However, weak demand in the region and signs of recovering Qatari LNG supply limited further price increases. Cold weather forecasts in Asia and Europe also contributed to higher demand, intensifying competition for LNG cargoes.