Oil prices climbed on Friday, October 30, as concerns grew over potential U.S. military strikes on Iran. Brent crude rose to $115.44 a barrel in early Asian trading, while U.S. West Texas Intermediate (WTI) gained 0.8% to $102.84. The rise came after a Wall Street Journal report that a top U.S. commander briefed President Donald Trump on military options, with Trump hinting at possible airstrikes on Tehran after next week's midterm elections.
Diplomatic efforts between the U.S. and Iran offered little reassurance. Iran confirmed receiving a letter from U.S. Vice President JD Vance, aimed at reviving peace negotiations. However, Iran's Parliament Speaker Mohammad Bagher Ghalibaf suggested that Tehran would not compromise on its positions to end the war.
Security risks around the Strait of Hormuz resurfaced after an unknown projectile struck a tanker on Thursday. Despite this, Brent crude has surged 12% in October, reaching a six-month high. The pressure on prices could ease temporarily as Ukraine's military paused strikes on Russian oil refineries at Trump's request, a move expected to last until after the U.S. midterms.
Meanwhile, the oil industry's earnings season nears its end, with ExxonMobil and Chevron set to report later on Friday. Shell's CEO Wael Sawan noted that current high prices are likely to persist due to depleted global inventories. Some relief came from reports of recovering supply from the Gulf, with nine supertankers loading Saudi cargoes on Wednesday, indicating shipments near pre-war levels.