Crude Oil Surges 3% on Reports of Possible U.S. Military Strikes on Iran

Crude oil prices jumped Wednesday after multiple reports suggested the U.S. could launch a large-scale attack on Iran as early as next week, heightening concerns of prolonged supply disruptions. West Texas Intermediate crude for December delivery rose $3.12, or 3.12%, to $103.02 a barrel, reversing two sessions of losses. The Wall Street Journal reported the U.S. has asked Gulf nations to prepare for a short, intense campaign against Iran jointly with Israel after the U.S. midterm elections in early November. President Donald Trump, asked about the plans, said "anything is possible" and warned Iran that delaying negotiations would not improve its position. Iran's Foreign Minister Abbas Araghchi warned that Israeli military action in the Gulf could have devastating consequences for international energy markets. The Strait of Hormuz crisis continues, with U.S. Naval Forces Central Command advising vessels to stay clear of the area. The Federal Reserve left its benchmark rate unchanged at 3.75% to 4.00%. The American Petroleum Institute reported crude inventories fell by 2,031,000 barrels for the week ending October 23.