Brent Crude Closes at $115.32 a Barrel as US Reportedly Tells Gulf States to Prepare for Post-Midterm Strikes on Iran
Brent rose 1.3% to $115.32 and West Texas Intermediate gained 2.9% to $102.78 on 28 October.
Brent crude futures rose 1.3% to close at $115.32 a barrel on Wednesday 28 October, while US West Texas Intermediate (WTI) crude futures gained 2.9% to settle at $102.78. Prices climbed on reports that the United States is preparing to renew strikes against Iran after the midterm elections.
The reports said Washington had told Gulf countries to prepare for such strikes. At a campaign rally in Texas on Tuesday, President Donald Trump said the conflict could be brought to a swift conclusion, but that any agreement must ensure Iran can never obtain a nuclear weapon.
Supply fears were also fuelled by the Houthi movement in Yemen, an Iran-allied group, which said on Tuesday it attacked Saudi Arabia's Ras Tanura refinery with a ballistic missile. The claim comes from the group itself.
Analysts say a geopolitical risk premium is now embedded in crude prices, and traders are closely watching developments around the Strait of Hormuz.