Crude caught a bid on fresh security jitters. Brent popped as much as 0.8% near $97, then cooled. By 7:16 a.m. in Singapore, November Brent was up 0.4% at $96.64 a barrel. October WTI gained 0.6% to $91.99, keeping U.S. crude around the low $90s.
After the latest flare-up, hedge funds hold their strongest pro‑Brent stance since May, adding positions during the week that ended Sept. 1. Net long wagers on U.S. crude rose to their peak since June. The latest pop follows last week's surge after a stretch of relative calm gave way to renewed U.S.-Iran hostilities.
According to Washington, weekend strikes targeted three Iranian oil tankers as retaliation for ballistic missiles fired at US Navy warships, and one of the tankers was destroyed. U.S. Central Command said Saturday the Suezmax Kylo sank in the Gulf of Oman.
Tehran also said it struck three tankers, a claim that hasn't been independently corroborated.
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So far this year, Brent crude has risen by almost 60%, and refined fuels like diesel have climbed even more, driven by a Middle East war now in its sixth month and by the Russia-Iran war. U.S. Energy Secretary Chris Wright said there will be no letup in the U.S. naval presence, including the blockade intended to curb Iranian oil exports and keep commercial ships moving through the strait. He said last week that millions of barrels a day are transiting Hormuz.
At Karobaar Capital LP in Chicago, chief investment officer Haris Khurshid said, "The market has repriced a lot of the risk, but not a true worst case scenario." He added, "If shipping deteriorates further or we start seeing more sustained disruption to actual barrels, then $100 becomes much easier to justify."
With November's midterms nearing, surveys indicate Americans rate President Donald Trump poorly on his management of the Iran war, a conflict that has pushed energy costs higher.
Energy prices ripple into airfare, delivery fees, and your weekly fill-up. If the planned restriction around Hormuz or further naval action slows actual barrel flows through that chokepoint, the path to $100 oil and pricier fuel gets shorter. Watch whether shipping stays orderly or starts to snag.
