Oil prices jump more than 2% to six-month highs as Iran war keeps Middle East supply risks elevated

Oil prices rose more than 2% on Friday and settled at their highest levels since late April as traders weighed the risk of renewed escalation in the Iran war and further disruption to Middle East energy supplies.

December Brent crude futures, which expired on Friday, settled $2.76 higher, or 2.4%, at $117.64 a barrel after touching $118 during the session.

The more actively traded January Brent contract gained $2.63 to settle at $113.43 a barrel.

U.S. West Texas Intermediate crude rose $2.12, or 2.08%, to $104.12 a barrel.

The gains capped a strong month for oil. Brent finished October 13.6% higher, while WTI rose 15.2%.

Friday’s rally came as markets remained focused on potential escalation involving Iran after the Nov. 3 U.S. midterm elections and on risks to shipping through the Strait of Hormuz.

A tanker in the strait was struck by explosive devices attached by a small boat on Friday, according to the UK Maritime Trade Operations, adding to concerns over one of the world’s most important energy transit routes.

Diplomatic efforts are continuing in parallel, with Qatari mediators returning to Tehran as Washington and Iran explore whether negotiations can resume.