Oil Prices Surge Amid Strait of Hormuz Tensions and US-Iran Hostilities Threat

Oil prices experienced a significant surge of over 2 percent on Friday, marking the fourth consecutive monthly increase. This rise was driven by an incident involving a tanker in the Strait of Hormuz and renewed threats from the US regarding potential military action against Iran. Brent crude, the global benchmark for two-thirds of the world's oil, climbed 2.37 percent to $117.56 a barrel by 7:32 pm UAE time. West Texas Intermediate (WTI), the US crude benchmark, also saw gains, increasing by 2.13 percent to $104.17 a barrel.

For the week, Brent is on track to rise by 0.64 percent, while WTI is expected to climb nearly 1 percent. On a monthly basis, both benchmarks are poised for substantial increases, with Brent projected to spike by approximately 15 percent and WTI by about 12 percent.

The Islamic Revolutionary Guard Corps of Iran reported on Friday that an oil tanker struck a naval mine while attempting to navigate an unauthorized route in the Strait of Hormuz. This incident follows a similar event on Thursday night, where another tanker was hit by explosives attached to its hull by a small boat, not a projectile as initially reported, according to the UK Maritime Trade Operations agency.

In parallel, US President Donald Trump indicated on Friday that he believes the conflict with Iran, now in its ninth month, will conclude soon, though he provided no specific details. These remarks precede the crucial US midterm elections scheduled for November 3. President Trump had previously stated that Washington would refrain from striking Iran before the elections, leading investors to anticipate potential attacks in the near future.

Additionally, Qatari mediators returned to Tehran on Friday as part of ongoing efforts to broker a deal between the US and Iran, an official familiar with the talks informed Reuters. Iran has not yet issued a public statement on the draft agreement. However, an Iranian official conveyed to The National that the country