Oil prices settled about 4% higher as renewed concerns over the Iran conflict raised fears of further disruption to energy supplies, although gains eased after US President Donald Trump said Washington was holding productive talks with Tehran.
Brent crude futures rose $4.08, or 4.1%, to close at $104.28 a barrel, while US West Texas Intermediate crude gained $3.21, or 3.6%, to $91.49.
Both benchmarks had gained more than $5 a barrel earlier in the session, with Brent reaching its highest level since September 29.
Prices later pulled back from those highs after Trump said the United States was having “productive discussions” with Iran and would not launch another attack before the November 3 midterm elections.
Concerns remained over oil shipments through the Gulf and the Strait of Hormuz as attacks on vessels using the waterway increased. Tanker attacks during the previous week reached their highest level since the conflict began, even as Gulf producers increased exports.
“The frequency of Iranian attacks on ships is now at the highest point since the war began, and likely to intensify further,” said Saul Kavonic, head of energy at MST Marquee.
The Strait of Hormuz is one of the world’s most important energy routes and carried shipments equivalent to about 20% of global oil and fuel supplies before the conflict.
Hurricane Isaias added another supply concern as it approached the US Gulf Coast, threatening offshore oil production and contributing to the sharp rise in crude prices.
Despite Trump’s comments easing immediate concerns over another US strike on Iran, risks to shipping in the Middle East and possible hurricane-related disruptions kept oil prices sharply higher.
Elie GATETE
RADIOTV10