Crude Oil Surges 3.6% to $103 as U.S.-Iran and Houthi-Saudi Tensions Threaten Gulf Supply Flows

Crude oil prices jumped Friday amid escalating fears of a new U.S.-Iran war and the ongoing Houthi-Saudi conflict, threatening prolonged disruption to Arab energy flows. WTI crude for December delivery rose $3.54, or 3.56%, to $103.01 a barrel. The New York Times reported the U.S. and Israel are preparing joint military strikes on Iran that could launch any time after the U.S. midterm elections in the first week of November, potentially targeting nuclear installations, energy infrastructure and missile and drone facilities. The report said talks with Iran remain ongoing. The Houthi militia claimed attacks on Saudi Arabia's defense headquarters in Riyadh, prompting Aramco to evacuate its Dhahran headquarters staff after strikes on airports and energy infrastructure. The Saudi-led coalition said it intercepted and destroyed the missiles. Gulf oil exports have exceeded pre-war levels, averaging more than 24 million barrels a day in the week through October 18, according to The Wall Street Journal. Traders are also awaiting the Federal Reserve's rate decision on Wednesday. The dollar index traded at 101.82, up 0.22%.