Oil prices extend gains as Middle East tensions rise

Brent crude traded at $116.56 per barrel and West Texas Intermediate crude reached $103.35, as escalating Middle East tensions supported oil prices heading for a fourth consecutive monthly gain.

Brent was on track for an October increase of nearly 13%, while WTI was set to gain approximately 14%, following several months of rising prices linked to regional conflict and supply concerns.

"Continued kinetic action around the Strait of Hormuz amidst doubts of a viable diplomatic pathway are keeping oil prices elevated in expectation of an escalation of the conflict in coming weeks," said MST.

The Houthis claimed attacks on Saudi energy facilities, including the Ras Tanura and Rabigh refineries and an Aramco facility in Abqaiq, while reports of tanker incidents near the Strait of Hormuz added to concerns about regional shipping security.

Oil prices remained supported by supply disruption concerns, with Brent and WTI trading at $116.56 and $103.35 per barrel, respectively, at the time of the reported market update.

The Strait of Hormuz remains a major route for global oil shipments, making security incidents in the area important to crude supply expectations and international energy markets.

Oil prices have also responded to changes in Middle East diplomatic developments, tanker security and the availability of alternative export routes, with traders monitoring whether regional tensions will affect production and shipments.