Crude Oil Jumps 2.25% to $99.34 on Reports of Planned U.S.-Israel Strikes Against Iran

Crude oil prices surged Thursday amid rising concerns over prolonged supply disruptions following reports that the U.S. and Israel are planning a joint military operation against Iran after the U.S. midterm elections in November. West Texas Intermediate crude for December delivery rose $2.19, or 2.25%, to $99.34 per barrel. The New York Times reported the two nations have drawn up plans for a short but intense campaign targeting Iran's nuclear facilities, energy infrastructure, and missile and drone capabilities, and have begun rehearsing maneuvers. Diplomatic efforts toward an agreement with Iran are reportedly continuing. Separately, Reuters reported the U.S. has instructed some diplomats and families to evacuate Middle East posts, including Saudi Arabia, after Houthi attacks on key infrastructure in Riyadh. Iran's Islamic Revolutionary Guards Corps disputed Secretary of State Marco Rubio's claim that shipping traffic through the Strait of Hormuz is returning to pre-war levels. Traders are focused on the Federal Reserve's two-day meeting next week, with economists speculating a rate hike could follow higher inflation.