At the close of trading on 8/10, Brent crude oil prices increased 4% to 104,2 USD per barrel. US WTI crude added 3,6% to 91,5 USD. During the session, prices for both types of oil at one point rose more than 5% due to fears that the US might attack Iran and Hurricane Isaias was expected to make landfall in the US on 9/10.

The gains later narrowed when US President Donald Trump stated that Washington was holding discussions with Iran and pledged not to attack the country until after the US mid-term elections on 3/11.

Iran's Tasnim news agency also reported that Foreign Minister Abbas Araqchi stated he was reviewing the US response to the proposal to reopen the Strait of Hormuz. Iran would respond in the coming days.

However, on 8/10, the US Treasury Department imposed new sanctions on Iran, targeting individuals, networks, and 17 crude oil and refined product tankers belonging to the country. This move aimed to increase economic pressure on Tehran.

Governments are seeking ways to respond to record-high fuel prices and supply disruptions caused by the conflict. France and Saudi Arabia are exploring options to use French military vehicles and equipment to protect the Yanbu oil port on the Red Sea. Syria is also considering military support for Saudi Arabia in its conflict with Iran-backed Houthi forces in Yemen.

Threats to oil shipping in the Gulf and the Strait of Hormuz increased sharply in October. Attacks on oil tankers passing through the strait last week reached their highest level since the beginning of the conflict.

Another risk to supply is Hurricane Isaias, which is moving towards US offshore production areas, causing companies to shut down rigs. As of 8/10, oil and gas companies in the US Gulf of Mexico had halted the production of about 1,3 million barrels per day, equivalent to over 60% of current oil output, according to the US Bureau of Ocean Energy Management.

Ha Thu (via Reuters)