Oil Prices Spike as Strait of Hormuz Tensions Intensify

West Texas Intermediate crude futures surged 4.2% to trade at $107.50 per barrel early Tuesday, marking a ninth consecutive day of gains. The rally, which puts the commodity on track for a nearly 20% monthly increase, coincides with the expiration of front-month contracts. Simultaneously, Brent crude for December delivery climbed 1.9% to $111.42 per barrel.

Market anxiety centers on the Strait of Hormuz, where Kpler data indicates at least 18 commercial vessels have faced attacks in the last two weeks. Iran’s Revolutionary Guard claimed responsibility for the latest fire, citing the tankers as "non-compliant" with naval directives. Foreign Ministry Spokesperson Esmaeil Baqaei warned that Tehran would respond to any U.S. military intervention with force. Despite the heightened rhetoric, President Donald Trump previously stated that U.S. forces would refrain from striking Iran before the November 3 midterm elections.