PRECIOUS METALS | Oil Extends Gains After U.S. Strikes Iranian Tankers Near Kharg Island

Oil extended its rally after the United States struck several Iranian tankers near Kharg Island, a major crude export hub, escalating hostilities and stoking concern over worsening disruptions in the Strait of Hormuz. According to Sina Finance, WTI crude futures climbed above $94 a barrel for a seventh straight session, while Brent crude futures settled near $98 a barrel. A U.S. official said the targeted vessels were linked to Iran's Islamic Revolutionary Guard Corps, and the strikes were a response to Iran's attempt to launch a missile attack on a U.S. warship. Tehran then responded by targeting Jordan with ballistic missiles and warning ships in the Persian Gulf. Iranian state television, citing the Islamic Revolutionary Guard Corps, said all tanker crews near terminals in Kuwait and Bahrain should immediately abandon their vessels, whether anchored or docked, because they would become targets. Before the latest U.S. strikes, Iran-backed Houthi fighters launched another attack on energy facilities in southern Saudi Arabia, forcing several sites offline. Over the past week, conflict in the Middle East has escalated again, ending a relatively calm period and pushing oil prices higher. Darrell Fletcher, managing director of commodities at Bannockburn Capital Markets, said the path of least resistance is for prices to keep moving higher and steadily upward as the war enters its seventh month. Brent crude has risen more than 60% this year and is nearing the $100-a-barrel level for the first time since late July. Diesel and other refined fuel prices have risen even more sharply as the conflict spreads toward the Red Sea near Saudi Arabia and the Russia-Ukraine war continues. October-delivery WTI crude rose 1.7% to $93.03 a barrel. Trading on Monday was scheduled for Tuesday because of the U.S. holiday. November-delivery Brent crude rose 1% to $97.92 a barrel.