Middle East Tensions Keep Oil Markets Volatile

By noon Thursday, the October West Texas Intermediate contract climbed 13 cents to $91.09 a barrel, while November contracts for both WTI and ICE Brent slipped as traders reacted to the escalating conflict. Earlier in the session, Brent crude briefly surged past $97 a barrel, marking a fourth consecutive day of gains that pushed weekly appreciation above 10% before the pullback.

The geopolitical landscape remains precarious following U.S. strikes across Iran and the interception of Iranian drones and missiles by Kuwait. Israeli Defense Minister Israel Katz has signaled intent to strike Iranian energy assets, prompting U.S. Defense Secretary Pete Hegseth to extend troop deployments in the region. Meanwhile, Iran continues to tighten its grip on the Strait of Hormuz, expanding its list of vessels subject to detention or fines.

Analysts at Ritterbusch & Associates noted that while some shipping activity persists, a diplomatic breakthrough remains out of reach. The firm expects petroleum prices to stay elevated through the end of the year as the threat to global supply chains persists. Refined products also saw mixed results, with October RBOB holding steady at $3.1040 a gallon, while October ULSD dropped more than 7 cents to $4.6059.