Oil Prices Today: Brent crude oil prices hovered near $104 a barrel on Friday morning after surging 4% in the previous session, as escalating Iranian attacks on tankers passing through the Strait of Hormuz and supply disruptions caused by Hurricane Isaias in the Gulf of Mexico heightened concerns over global oil supplies.
At last check, Brent crude, the international benchmark, were trading 0.3% lower at $103.89 a barrel.
On Thursday, Brent crude gained 4% to settle at $104.28 a barrel, while US West Texas Intermediate (WTI) crude futures advanced 3.6% to close at $91.49 per barrel.
Why Are Brent Crude Oil Prices Rising?
Crude oil prices surged on Thursday as Iran stepped up attacks on tankers transiting the Strait of Hormuz, a critical route for global oil shipments. At the same time, Hurricane Isaias threatened offshore oil production in the Gulf of Mexico, adding to concerns over supply disruptions.
Nine tankers have come under attack in and around the Strait of Hormuz over the past week, putting the recent recovery in crude oil flows through the waterway at risk.
Oil prices retreated from their session highs after US President Donald Trump said Washington would not attack Iran before the November midterm elections. NBC News, citing unnamed sources, had earlier reported that Trump and his national security team were considering renewed strikes in the coming weeks.
Strait of Hormuz Oil Flows Remain Below Normal Levels
Crude oil shipments through the Strait of Hormuz remain under pressure amid escalating tensions in the Middle East.
According to Kpler data, around 9.5 million barrels per day exited the Strait of Hormuz during the week ended Tuesday, approximately 30% below normal levels before the Iran war.
However, crude oil flows from the Middle East, including pipeline workarounds, stood at 16.4 million barrels per day, nearly equivalent to pre-war levels.
The latest attacks on tankers threaten to disrupt the recovery in shipments through the strategic waterway, adding to uncertainty over the outlook for global crude oil supplies.
Hurricane Isaias Disrupts US Offshore Oil Production
Supply concerns have also intensified in the US Gulf of Mexico, where Hurricane Isaias has forced oil companies to shut in production.
Around 500,000 barrels per day, equivalent to 25% of offshore oil production in the region, has been shut in as the hurricane moves towards the coasts of Alabama, Mississippi and Florida's Panhandle.
The disruption has added another supply-side concern for oil markets already grappling with geopolitical tensions and reduced crude shipments through the Strait of Hormuz.
Middle East Tensions Escalate as Saudi Arabia Intercepts Missiles
Tensions in the Middle East have escalated further following missile attacks by Iran-backed Houthi militants in Yemen.
The militants fired missiles at airports in Saudi Arabia's capital, Riyadh, and the city of Abha on Tuesday and Wednesday. Three people were killed and 36 injured, according to Saudi state-owned media outlet Al Arabiya.
Saudi Arabia's military said it intercepted another volley of ballistic missiles fired towards Riyadh and Khamis Mushait on Thursday.
The developments have added to geopolitical uncertainty across the region, keeping attention focused on potential disruptions to crude oil production and transportation.
What Is the Outlook for Brent Crude Oil Prices?
Brent crude oil prices remain elevated amid concerns over tanker security in the Strait of Hormuz, the impact of Hurricane Isaias on US offshore production and the possibility of further escalation in the Middle East.
With crude shipments through Hormuz still below pre-war levels and offshore production in the Gulf of Mexico disrupted, developments around these supply routes and geopolitical tensions are likely to remain key factors for oil markets.
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