Oil Heads for Fourth Monthly Gain as Hormuz Tanker Attack Escalates Supply Fears

Oil prices rose Friday and were set for a fourth straight monthly gain after an explosive-laden boat struck a tanker in the Strait of Hormuz, underscoring supply risks tied to the US-Iran conflict ahead of the US midterm elections. Brent December futures, expiring Friday, gained $2.26, or 2%, to $117.14 a barrel by 1236 GMT, while the more active January contract rose $2.30 to $113.10. West Texas Intermediate climbed $1.94, or 1.9%, to $103.94. Brent was on course for a 13% monthly gain and WTI for a 15% jump. The UK Maritime Trade Operations agency reported the tanker was hit by limpet mines attached by a small boat, the first known successful strike of its kind in the waterway since the US war with Iran began in February. No group immediately claimed responsibility. "Continued kinetic action around the Strait of Hormuz amidst doubts of a viable diplomatic pathway are keeping oil prices elevated," said Saul Kavonic of MST Marquee. Qatari mediators returned to Tehran on Friday, though UBS analyst Giovanni Staunovo said the likelihood of escalation and supply disruption remains elevated.