U.S. oil surges to top $107, Brent crude at five-month high amid Mideast tensions
Oil extended its rally on Tuesday as investors continued to monitor developments in the Middle East.
Oil prices climbed on Tuesday as investors continued to monitor simmering tensions in the Middle East and U.S. front-month futures contracts neared expiry.
Front-month U.S. West Texas Intermediate crude oil futures jumped 4.2% by 6:20 a.m. ET, trading at around $107.50 per barrel. The contracts expire on Tuesday.
WTI crude futures for November delivery have been on a tear this month, with Tuesday's moves putting the contracts on track for their ninth consecutive session of gains and a monthly rise of almost 20%.
Global benchmark Brent crude futures for December delivery were last seen trading 1.9% higher at $111.42 per barrel, their highest price since May 19.
Developments in the Middle East remain in focus, with attacks on commercial ships transiting the Strait of Hormuz escalating in recent weeks. At least 18 vessels have come under fire over the past two weeks, according to ship tracker Kpler.
Iran's Revolutionary Guard Corps said Tuesday that two "non-compliant" oil tankers had been set ablaze in the strait after hitting mines laid by its naval unit, Iranian state-affiliated news agency Tasnim reported.
Meanwhile, Foreign Ministry Spokesperson Esmaeil Baqaei said at a weekly news conference on Tuesday that Tehran would respond to any American strike "in equal measure, if not more forcefully," according to Tasnim.
U.S. President Donald Trump said earlier this month that American forces will not attack Iran before the midterm elections on Nov. 3.
