US Deploys Troops to Mideast, Oil Prices Surge
Oil prices surged by more than $4 per barrel on Thursday following reports that the US is deploying additional troops and an aircraft carrier to the Middle East. The new front-month December Brent crude futures contract settled at $102.31 a barrel, up $4.28, or 4.37%. US West Texas Intermediate crude futures settled at $92.87 a barrel, up $2.45, or 2.71%.
The deployment of Marine Corps ships and up to 10,000 additional troops is expected to arrive by the end of November, according to senior US officials cited in a Wall Street Journal report. This move could signal an escalation of the war against Iran, as President Donald Trump has hinted at restarting bombing campaigns after the US midterm elections in November.
Oil prices are rising despite crude flows from the Middle East having largely recovered to prewar levels. However, the recovery remains fragile, with recent attacks on tankers and refineries in the region contributing to concerns of global fuel shortages worsening.