Crude oil markets experienced a sharp upswing in late trading Thursday as intelligence reports emerged suggesting potential military action between Iran and Israel. Trading data showed petroleum prices climbing more than $2 per barrel, with benchmark WTI reaching $70.76 and Brent touching $74.26 in post-settlement activity.
Intelligence reports point to Iranian military preparations involving Iraqi territory. Axios reported on Thursday that sources familiar with Israeli intelligence assessments indicate Tehran might orchestrate an attack through allied militias based in Iraq, employing both unmanned aerial vehicles and missile systems.
The timing could coincide with the period leading up to the US electoral process on November 5.
Market anxiety intensified following provocative remarks by Revolutionary Guard Commander Hussein Salami, who warned Israel to expect unprecedented consequences for recent actions. Energy sector analyst Phil Flynn of Price Futures Group highlighted the growing possibility of military escalation targeting crucial infrastructure.
Market volatility has characterized recent trading sessions, with crude prices initially plummeting 6% earlier in the week when tensions appeared to ease. However, the combination of regional instability and potential OPEC+ production adjustments has created renewed upward pressure on prices. The oil producers’ group plans to convene on December 1 to evaluate output strategies.
In China, economic indicators show an uptick in manufacturing performance — its first positive reading since spring. Despite this development, industry experts remain cautious about near-term market stability.
Energy consultant firm Rystad Energy identified several critical factors likely to influence petroleum markets in the coming weeks. These include the approaching US political transition, persistent questions about Chinese economic recovery, uncertainty surrounding OPEC+ production decisions, and escalating regional tensions.
Information for this story was found via Reuters, Axios, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
