WTI Oil trades above $103.00 near five-month highs as fresh attacks unfold in the Strait of Hormuz

• After reaching new five-month highs at $104.00, WTI Oil holds above $103.00.
• Supply disruption fears intensify as attacks continue in the Strait of Hormuz.
• Despite regional powers’ continued efforts to secure peace, military action remains an option for the US.

A monthly gain of 15% remains in prospect for US benchmark West Texas Intermediate (WTI), with the price holding above $103.00 a barrel after touching five-month highs just above 104.00 earlier on Friday. Oil is advancing for a third successive day, supported by reports of further attacks on vessels trying to pass through the Strait of Hormuz, which have heightened fears of supply disruption.

Crude prices continue to rise as vessels come under attack in the Strait of Hormuz. According to the UK Maritime Trade Organisation (UKMTO) on Friday, two limpet mines exploded and disabled an oil tanker. It was the first successful attack using this type of explosive since the conflict began in February.

Adding to worries about global supply, authorities from the Iranian Islamic Revolutionary Guard Corps (IRGC) stated that four vessels had struck tankers in the Hormuz waterway. Tehran-backed Houthi militias also claimed to have attacked airports and oil infrastructure in Saudi Arabia.

Qatari mediators return to Tehran as peace efforts continue

With a peace agreement still proving elusive, regional mediators are continuing their diplomatic efforts. A Qatari delegation returned to Tehran in a fresh bid to bring the US and Iran back to negotiations, Reuters reported earlier on Friday. The visit followed alleged contact between US Vice President JD Vance and Iranian officials in which he proposed a new diplomatic process.

Wide differences over key questions, including uranium enrichment, nevertheless leave markets doubtful that a negotiated end to the conflict is within immediate reach. Meanwhile, the Wall Street Journal reported on Thursday that a senior US commander had briefed US President Donald Trump on military options in Iran. This suggests hostilities might restart after next week’s mid-term elections.