Oil heads for fourth straight monthly gain after Hormuz tanker attack
Crude is on track for a fourth consecutive monthly rise after a tanker attack near the Strait of Hormuz renewed fears that the Middle East conflict could disrupt oil supply.
The incident near the Hormuz chokepoint, through which a large share of the world’s seaborne oil passes, added to a string of supply-side worries that have supported prices this month. West Texas Intermediate (WTI) crude has recently traded near a six-month high, with other reports citing levels around $101.85 a barrel.
Markets are also weighing reports that US President Donald Trump is considering military options against Iran, alongside separate reports of a diplomatic outreach from US Vice President JD Vance to a senior Iranian security official aimed at restarting talks. That mix of escalation risk and diplomatic signals has kept crude trading in a volatile but broadly higher range.
Adding to the tension, Yemen’s Houthi movement said it had carried out several missile and drone attacks on Saudi Arabian oil facilities, airports and a military site, including strikes near the Ras Tanura refinery and Saudi Aramco’s Abqaiq complex. Analysts at Rabobank said oil markets have so far been pricing the more optimistic of the possible outcomes, even as prolonged energy-price pressure makes central banks more cautious.
Why it matters for markets: A sustained run-up in crude tends to feed through to energy-linked inflation expectations, which can influence central bank policy paths and the US dollar. Continued attacks near key shipping routes or Saudi infrastructure keep a geopolitical risk premium embedded in oil prices, with knock-on effects for energy stocks and broader risk sentiment in equity indices.
Sources: Investing.com (commodities); Investing.com (commodities); FXStreet