Brent Crude Rises Amid New US Military Deployments to Middle East
Brent crude oil prices rose sharply on Thursday amid reports of new US military deployments to the Middle East. The international benchmark contract increased by 4.4% and closed at $102.31 per barrel, while WTI crude traded in the US gained 2.7% to $92.87.
According to the Wall Street Journal, American officials are preparing to send a third aircraft carrier strike group to the region, along with up to 10,000 additional soldiers. The deployment is expected to reach the Middle East by the end of November and comes as the US assesses new developments related to its conflict with Iran.
The military movement has increased market attention to possible disruptions in oil supply. Current US President Donald Trump has reportedly discussed with advisers the possibility of resuming attacks against Iran after the midterm elections. Scott Modell, CEO of Rapidan Energy and a former CIA officer, said 'I believe the president will intensify the conflict after the midterm elections; we constantly hear that the Iranians will intensify the conflict during this period.'
The rise in oil prices comes despite crude oil flow from the Middle East approaching pre-war levels. However, attacks on ships crossing the Strait of Hormuz continue to pose a challenge to the recovery.