Oil prices rose on Thursday amid reports of potential renewed US and Israeli strikes on Iran following the US midterm elections, as attacks targeting Saudi Arabia’s energy infrastructure and vessels transferring oil in the Persian Gulf heightened concerns over supply disruptions.
International benchmark Brent crude futures for December delivery rose 2.6% to $111.68 a barrel at 9.46 a.m. local time (0646 GMT), compared with the previous close of $108.82.
US benchmark West Texas Intermediate (WTI) crude futures for December delivery gained 2.5% to $99.54 a barrel, up from $97.15 at the previous close.
The US and Israeli militaries have developed plans for renewed strikes against Iran following the US midterm elections, with preparations advancing for a potential short but intensive campaign, The New York Times reported Wednesday.
Citing US officials and other people briefed on the deliberations, the newspaper reported that the two militaries had stepped up activity, including flights over Iraq to practice strike maneuvers.
Potential targets could include Iran’s nuclear facilities, missile and drone arsenal, and energy infrastructure, according to the report.
US Defense Secretary Pete Hegseth met with Israeli Prime Minister Benjamin Netanyahu in Israel this week to discuss possible new strikes, the newspaper reported.
Meanwhile, attacks targeting Saudi Arabia’s energy infrastructure added to upward pressure on oil prices.
The Saudi-led coalition in Yemen said early Thursday that it had intercepted and destroyed four drones over Saudi Arabia’s Eastern Province amid escalating attacks targeting the kingdom.
Coalition spokesman Turki al-Maliki announced the interceptions in a statement on X, without providing further details.
Falling debris from an intercepted drone targeting an Aramco facility at the Shaybah oil field killed two people and injured two others, the Saudi Energy Ministry said.
The coalition also reported intercepting and destroying seven drones in separate incidents on Wednesday amid escalating hostilities involving Yemen’s Houthi group.
Although production was reported to have remained uninterrupted, the attacks heightened concerns over the security of regional energy infrastructure, supporting oil prices.
– Four vessels transferring oil in Persian Gulf hit
Iran’s Islamic Revolutionary Guard Corps (IRGC) said Thursday that it had targeted four vessels in the northern Arabian Gulf that were transferring oil cargoes between ships.
The IRGC’s naval forces said in a statement that “fires were still burning on the targeted ships.”
It added that the four vessels had been observed transferring oil between ships and were targeted simultaneously for sailing along “unauthorized routes.”
The IRGC accused the US of “encouraging ships to cross a maritime passage planted with mines,” saying this was leading to an “increase in maritime incidents.”
The reported attacks heightened concerns over potential disruptions to oil shipments through the Persian Gulf, adding to upward pressure on prices.
– US commercial crude inventories fall
Meanwhile, data showing a decline in commercial crude inventories and production in the US, the world’s largest oil consumer, also contributed to higher prices.
US commercial crude oil inventories fell by 0.7% in the week ended Oct. 16, according to data released by the Energy Information Administration (EIA) on Wednesday.
Inventories decreased by about 3.1 million barrels to 412.5 million barrels, while market expectations had pointed to a decrease of around 100,000 barrels.
Strategic petroleum reserves, excluded from commercial crude stocks, decreased by about 300,000 barrels to 282.7 million barrels.
Over the same period, gasoline inventories fell by approximately 3 million barrels to 205.3 million barrels.