Oil prices climbed on Friday as investors reacted to rising tensions between the U.S. and Iran following the midterm elections. Brent crude futures rose 1.67% to $99.90 per barrel, while U.S. West Texas Intermediate crude futures gained 1.43% to $91.69 per barrel.
The market is weighing the risk of renewed military conflict, which could disrupt oil supplies from the Middle East. Bob McNally, founder and president of Rapidan Energy Group, told CNBC's 'Squawk Box Asia' that he sees an 80% chance of fighting resuming, predicting both oil benchmarks could surpass $100 a barrel.
However, there are also hopes for a diplomatic breakthrough after Iran reportedly sent a nuclear proposal to Washington through Qatar. Meanwhile, Iran reported three additional attacks on oil tankers in the Strait of Hormuz on Thursday, with data showing attacks continuing at a near-record rate.
McNally emphasized that President Donald Trump is determined to prevent Iran from obtaining nuclear weapons, while the Iranian regime remains unwilling to abandon its nuclear capabilities. This fundamental disagreement keeps the risk of escalation high, a view shared by other analysts like Lombard Odier's Samy Chaar and Luca Bindelli.