Brent surged to its highest level since May. The NYT reported that the U.S. is preparing strikes against Iran

The price of Brent crude rose on October 22 to its highest level since May, according to Reuters. A barrel of the benchmark grade rose by just over 3% on Thursday, to $112.68. Contracts for U.S. WTI crude oil for December delivery are also up 2%—at one point, they rose to just over $100 per barrel.

Investors are reacting to a report in The New York Times (NYT), according to CNBC. Citing sources, the newspaper reported that the U.S. and Israeli militaries have drawn up plans to resume strikes against Iran after next month’s U.S. midterm elections. Preparations for a “short but intense” operation are moving forward, the NYT notes.

In addition, Reuters reports, new attacks by the Iran-backed Houthis on Saudi Arabian territory are reigniting market fears of a broader escalation of the Middle East conflict and further disruptions to oil supplies from the region. On Wednesday, the Houthis launched several strikes on targets in Saudi Arabia, killing at least one person and wounding eight others at the airport in Dammam, the agency notes. Two more people were killed in a drone attack on a Saudi oil field.

In light of this, on October 21, the U.S. State Department ordered American diplomats who were “not performing essential functions” and their family members to leave Saudi Arabia.

“Efforts to reduce tensions in both Ukraine and the Middle East do not inspire confidence,” says PVM Oil analyst Tamás Varga. “Reports that oil exports from the Middle East have exceeded pre-crisis levels are more than offset by attacks on ships in the Strait of Hormuz and Houthi strikes against Saudi Arabia and its oil infrastructure,” he said (as quoted by Reuters). “No de-escalation [of the conflict] is expected until the U.S. midterm elections, and this should keep oil prices high,” the analyst noted.

This article was AI-translated and verified by a human editor