Oil prices climb as Iran tensions and fears of tanker attacks weigh on market sentiment.
Crude oil prices held modest gains on Friday after recovering from a two-month low, as lingering uncertainty over Iran and concerns about tanker attacks continued to support buying interest.
Brent crude futures rose $3.67, or 3.88%, to $98.29 a barrel, while US West Texas Intermediate (WTI) gained 55 cents, or 0.61%, to $91.07 as of 8:41 am Beijing time on November 6.
The Brent-WTI spread stood at $7.22 a barrel. Meanwhile, Murban crude fell $5.00, or 4.96%, to $95.89.
Brent recorded its first gain in four sessions on Thursday, rebounding after plunging more than 8% a day earlier to reach a near two-month low.
Iran tensions and tanker incidents keep oil prices volatile
Brent crude briefly climbed to $98.44 a barrel on Thursday, according to Trading Economics, as escalating security concerns in the Middle East continued to support oil prices.
Although major shipping routes in the region remain operational, vessels continue to face significant security risks. Shipping companies are assessing individual voyages against evolving military threats, while insurance costs have surged since the conflict began on February 28, 2026.
Iran’s Revolutionary Guard said two oil tankers and a tugboat caught fire after attempting to navigate unauthorised routes through the Strait of Hormuz. Meanwhile, the UK Maritime Trade Operations (UKMTO) reported at least five vessel-related incidents in the Gulf since Sunday.
Adding further support to prices, US inventory data showed declines in crude oil, gasoline and distillate stocks, while demand reached a one-year high.
Geopolitical uncertainty weighs on market outlook
Investors remain focused on the direction of the conflict and the possibility of further military escalation.
Eurasia Group lowered its estimate of the likelihood of renewed US strikes to 60% from 65%. However, it also reduced the probability of a diplomatic agreement to 10% from 20%, highlighting the growing uncertainty surrounding the conflict.
Despite the recent recovery, crude prices remain below their geopolitical peak of nearly $118 a barrel in late October.
The recovery in Middle Eastern crude exports has also not been matched by a similar improvement in refined fuel supplies, leaving energy markets vulnerable to further price volatility.
What’s next?
Oil markets will closely monitor Qatar-mediated negotiations, further security incidents in the Strait of Hormuz and Washington’s decisions on potential military action.
According to Eurasia Group, a further escalation in the conflict could push Brent crude prices towards $110–$125 a barrel.
