Global oil prices resumed gains on Friday, October 30, after falling the previous day. Investors reacted to reports that the US military command had presented President Donald Trump with options for new strikes on Iran. This heightened fears of further escalation of the conflict in the Middle East and possible disruptions to energy supplies.
The price increase was reported by Bloomberg.
During trading on October 30, December Brent crude futures rose above $116 per barrel. Those contracts expire on Friday. Meanwhile, the more actively traded January contract hovered near $112 per barrel.
The immediate trigger for the renewed price increase was a Wall Street Journal report about a White House meeting on October 29. According to the US publication, Admiral Brad Cooper, commander of US Central Command, personally presented Trump with possible military options against Iran.
The meeting was also attended by US Secretary of Defense Pete Hegseth, Chairman of the Joint Chiefs of Staff General Dan Caine, and other senior officials. The discussion took place amid Washington's preparation for a possible resumption of large-scale military operations in the Middle East.
In recent days, Trump has repeatedly hinted at new airstrikes on Iran after the US midterm elections scheduled for November 3. However, the US administration has not publicly announced a final decision on launching a new operation.
The new military signals from Washington shifted oil market sentiment after brief optimism about a possible resumption of US-Iran negotiations.
The previous day, October 29, prices fell amid reports of diplomatic contact between the two countries. Iranian authorities confirmed receiving a letter from US Vice President JD Vance, who, according to American media, sought to revive the negotiation process.
However, Tehran's stance remained firm. Iranian Parliament Speaker Mohammad Bagher Ghalibaf said Iran has no intention of abandoning its previously stated conditions for ending the war. Thus, the new diplomatic contact has not yet led to a significant rapprochement between the parties.
For the oil market, the main risk remains the potential expansion of hostilities in the Persian Gulf and disruption of shipping through the Strait of Hormuz. This route is vital for international oil supplies, so threats to its operation quickly affect prices.
According to Bloomberg, since early October, Brent has risen about 12%, reaching its highest levels in six months. The increase occurred despite a partial resumption of oil shipments from the Middle East, as shipping risks remain high.
Recall that on October 29, oil was falling after a new US diplomatic step toward Iran. At the time, investors hoped that direct contacts between Washington and Tehran would help avoid another escalation. However, news of the military meeting at the White House again intensified market participants' fears.
Based on materials from: Bloomberg, The Wall Street Journal
