Brent Crude Oil Prices Rise Above $102 As US-Iran Tensions Threaten Middle East Supplies

Brent crude oil prices extended their gains on Friday, October 2, remaining close to $103 a barrel as renewed tensions between the US and Iran heightened concerns over disruptions to energy supplies from the Middle East. Brent crude was up 0.05% at $102.40 a barrel at the latest check, after rising more than 4% in the previous session.

The latest rise followed reports that the US plans to send a third aircraft carrier strike group to the Middle East, along with Marine Corps ships and as many as 10,000 additional troops.

US officials cited by The Wall Street Journal said the forces are expected to reach the region by the end of November.

The additional military deployment has fuelled concerns that the conflict with Iran could intensify and threaten crude and refined fuel supplies. The USS Theodore Roosevelt left San Diego on Sunday, while the USS George H.W. Bush and USS George Washington are already deployed in the region.

Although Middle East crude flows have largely recovered to levels seen before the war, the recovery remains vulnerable. At least three tankers were reportedly attacked this week while attempting to pass through the Strait of Hormuz, according to maritime security agencies.

Global fuel supplies face multiple pressures

Energy markets are also dealing with disruptions beyond the Middle East. Ukrainian attacks on Russian refineries have led Moscow to restrict diesel exports, while attacks involving Iran and its Houthi allies have added pressure on fuel and refinery infrastructure.

US diesel prices reached record levels last month and remained high at an average of $6.40 a gallon on Thursday. US President Donald Trump has considered restricting diesel exports, although he has recently appeared to move away from the proposal.

Meanwhile, Chinese refiners have cancelled several gasoline and jet fuel export shipments scheduled for October, Reuters reported, citing unnamed sources. The move could reflect efforts to preserve domestic supplies.

With geopolitical tensions elevated and the Strait of Hormuz still exposed to disruption, traders continue to monitor developments in the US-Iran conflict and their potential impact on global oil and fuel availability.