Oil gains as Middle East hostilities, potential escalation stoke supply worries

Oil rose Thursday as Middle East worries keep markets on edge, with the U.S. reportedly considering large-scale U.S. military operations in Iran in the coming weeks.

Futures for international benchmark Brent crude for December delivery gained 2.14% at $102.35 a barrel. U.S. West Texas Intermediate futures for November advanced 1.78% at $89.85 per barrel.

President Donald Trump and his national security team have talked about possibly restarting large-scale U.S. military operations in Iran in the coming weeks, NBC News reported, citing sources. That also includes the option of strikes prior to next month's midterm elections.

Meanwhile, tensions in the Middle East have been rising with Iran-backed Houthis recently targeting airports in Saudi Arabia, while Tehran has also been attacking tankers in the Hormuz Strait.

"Looking ahead, crude is likely to remain tied to the security of Gulf export routes and infrastructure," said Inki Cho, a financial markets consultant at online trading platform Exness.

"Any escalation affecting traffic through Hormuz or Saudi energy infrastructure would threaten physical supply and could lift prices further," Cho added.