WASHINGTON (dpa-AFX) - Crude oil prices have catapulted on Friday both due to increasing fears of a fresh, deep and intense U.S.-Iran war as well as the ongoing Houthi-Saudi Arabia conflict. The escalation could result in halting the oil and energy flows from the Arab nations for a protracted period of time.
WTI Crude Oil for December delivery was last seen trading up by $3.54 (or 3.56%) at $103.01 per barrel.
The fears of renewed escalation in the Middle East that surfaced since yesterday continued to dictate crude oil prices.
Yesterday, the New York Times reported that the U.S. and Israel are preparing to conduct joint military attacks on Iran.
The strikes are reportedly slated to be launched anytime after the midterm elections in the U.S. in the first week of November are over. The operation could target Iran's nuclear installations, energy infrastructure, and missile and drone facilities.
However, the report did not rule out scope for negotiations and mentioned that talks with Iran are ongoing.
In South Carolina, Trump stated that though U.S. forces could start returning back to the U.S. as Iran has been weakened militarily and financially, he preferred to reach a durable solution to all the issues that started the conflict rather than striking a temporary peace deal.
Earlier, Iran's Islamic Revolutionary Guards Corps announced that it is all set to unveil a new weapon, which the military termed as the 'Father Of All Bombs,' to combat any sophisticated attacks by U.S. forces.
A couple of days before, the Wall Street Journal reported that Persian Gulf oil exports have crossed pre-war levels including shipments through Hormuz and other alternative routes, aided by the U.S. protection despite Iran's attacks.
The flows averaged more than 24 million barrels a day for the week through October 18.
Through Truth Social, Trump tagged the report to support his claim that the U.S. is winning the war.
Trump also accused Iran of making up fake hits and doing everything to drive up oil prices before the U.S. midterm elections.
U.S. Secretary of State Marco Rubio remarked that shipping traffic across the Strait of Hormuz is returning to pre-war levels with more vessels crossing the strait.
However, the IRGC refuted the claims and observed that a few ships travelling during nighttime under the cover of darkness could not be construed as opening of the strait.
Energy traders are concerned that any renewal of military operations between the U.S. and Iran could disrupt the recent gradual rebound seen in oil flows out of the Arab region.
Besides this, the intense attacks by the Iran-aligned Houthi militia of Yemen against Saudi Arabia added to the Middle East concerns. Houthis claimed attacking Saudi Arabia's defense headquarters in Riyadh.
After Houthi attacks on Saudi Arabia's airports and other energy infrastructures, oil major Aramco of Saudi Arabia instructed its staff to evacuate Dhahran headquarters.
The Saudi-led coalition announced that its air defense systems intercepted and destroyed Houthi missiles that targeted Saudi Arabia.
Energy markets are also awaiting the upcoming announcement on interest rates by the U.S. Federal Reserve on Wednesday.
Crude oil being a dollar-denominated commodity, a change in interest rates could impact dollar value and consequently influence oil prices.
The U.S. dollar index was last seen trading at 101.82, up by 0.22 (or 0.22%) today.
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