Solid Gold Berjangka – Global oil prices strengthened again in Friday’s trading, nearing a six-month high amid concerns over the potential resumption of U.S. military operations against Iran. On Friday (October 30), Brent crude was trading at approximately US$112.06 per barrel, while West Texas Intermediate (WTI) hovered around US$104.42 per barrel.
Brent reached its highest level since late April. Both major oil benchmarks are on track for their fourth consecutive monthly gain—rising by more than 10%—reflecting a significant geopolitical risk premium in the energy market.
Anxiety has intensified following reports that the head of U.S. Central Command, Admiral Brad Cooper, briefed President Donald Trump on military options regarding Iran. The White House meeting, which included Secretary of Defense Pete Hegseth and other senior officials, reportedly covered potential U.S. blockades and the possibility of resuming large-scale combat operations.
While hopes for a diplomatic resolution remain, the outlook has become increasingly uncertain. U.S. Vice President JD Vance has reportedly reached out to Iranian security official Mohsen Rezaei in an effort to revive negotiations, and regional mediators continue to work on a framework for resolving the conflict. However, Iran has reportedly rejected one of the proposals, suggesting that the likelihood of reaching an agreement in the near term remains limited.
The market also remains sensitive to developments in the Strait of Hormuz and threats to regional energy infrastructure. Saudi Arabia’s air defenses reportedly intercepted a ballistic missile launched by the Houthi group toward the Eastern Province, following the group’s claim of an attack on the Ras Tanura oil processing facility. Such threats continue to fuel concerns regarding potential supply disruptions.
From a fundamental perspective, a decline in U.S. crude oil inventories has also provided support for prices. Commercial inventories fell by 1.9 million barrels to 410.6 million barrels for the week ending October 23, contrary to expectations of a slight increase. As long as the risk of a U.S.–Iran conflict and threats to energy distribution routes remain high, Brent and WTI prices are likely to retain a geopolitical premium in the short term. (srh)