Brent futures traded at $115.74 a barrel by 0122 GMT, up 86 cents. US West Texas Intermediate (WTI) followed suit, climbing 72 cents to $102.72. Both benchmarks are now on track for their fourth consecutive monthly gain. This marks their sharpest monthly increases since July, with Brent set to jump nearly 14 per cent and WTI surging around 15 per cent for the month.
The spike follows Thursday’s escalation, when Yemen’s Iran-aligned Houthi group claimed successful attacks on key Saudi oil installations. Targets included the Ras Tanura and Rabigh refineries and an Aramco facility in Abqaiq. A Saudi-led coalition separately reported intercepting a cruise missile aimed at the kingdom’s western region. These kinetic actions have intensified fears regarding the security of energy infrastructure and shipping routes.
Diplomatic efforts to cool the situation have stalled. US President Donald Trump stated on Thursday that Vice President JD Vance had contacted Iran regarding medical supplies, following reports of a letter aimed at restarting peace negotiations. Iran’s semi-official Tasnim news agency reported that Tehran received the letter but has not responded. The agency quoted Iranian officials insisting that “any position that contradicts this framework is unacceptable.”
Maritime risks are compounding the land-based threats. Iran’s Revolutionary Guards reported that three tankers hit sea mines, exploded, and caught fire while using an unauthorised route south of the Strait of Hormuz. Saul Kavonic, head of energy research at MST Marquee, noted that continued kinetic action around the Strait, amidst doubts about a viable diplomatic pathway, is keeping oil prices elevated in expectation of further conflict.
Corporate confidence is visibly shaking. ExxonMobil and Chevron have cancelled plans for their executives to attend the United Arab Emirates’ biggest oil show next week, according to two sources familiar with the matter. Traders now watch closely for signs of further production disruptions or transportation blockages, as the trajectory of diplomatic talks and the security of key energy routes remain central to market sentiment.