Oil climbed as traders gauged Washington’s appetite for renewed military escalation against Iran, adding fresh risk to supplies in the Middle East.
Brent futures for December, which expire Friday, settled near fresh highs of $118 a barrel. That marks a fourth monthly gain for the global benchmark.
The US equivalent, West Texas Intermediate, closed above $104. The contract pared gains in post-settlement trading after US President Donald Trump said that peace talks are taking place, adding that “we have time, frankly.” Brent’s more-active January contract also eased.
The remark prompted traders to unwind some hedges against a potential weekend escalation. Trump has repeatedly threatened to restart airstrikes on Iran after next week’s midterm elections. On Thursday, a top commander briefed Trump on military options, the Wall Street Journal reported.
Diplomatic efforts have so far failed to quell the conflict in the Persian Gulf and the Strait of Hormuz, the world’s most important energy checkpoint. While regional efforts to revive negotiations were reported to have continued Friday, senior Iranian officials have signaled that Tehran would not compromise its positions on ending the war.
Brent has rallied in October — hitting a six-month high — despite a revival in oil flows through Hormuz. US Central Command’s Admiral Brad Cooper said in a video post on X that the US has helped its Gulf partners export 1.5 billion barrels of crude oil out of the region since the summer.
Yet hostilities in the strait have flared, with two separate tanker attacks around Hormuz. One vessel was struck by an unknown projectile during an outbound transit on Thursday, while the second was approached by a small boat that attached explosive devices to its hull, according to UK Maritime Trade Operations.
Efforts toward regional diplomacy have continued. A Qatari delegation headed by a senior adviser to Qatar’s prime minister was in Tehran Friday for talks and consultations with senior Iranian officials, Iran’s state-run IRNA reported.
Still, one of the country’s top negotiators, Parliament Speaker Mohammad Bagher Ghalibaf, suggested that the Islamic Republic’s positions on ending the war would not be compromised. His remarks followed confirmation from Tehran that officials had received a letter sent by US Vice President JD Vance, which the WSJ reported as a bid to revive the nations’ peace negotiations.
Low inventories and tight supplies of refined products have also supported prices, in part following waves of Ukrainian attacks on Russian processors. European diesel futures edged higher as Ukrainian forces were said to have struck a refinery in Russia’s Samara region after a pause that lasted around two weeks and supported a partial recovery of the nation’s refining operations. Meanwhile, Moscow’s forces carried out a strike against Ukraine overnight.