Oil edges lower from six-month high as traders assess Iran risks
Brent trades below US$116 a barrel after surging by more than 6% last week
OIL edged lower from a six-month high, even as US President Donald Trump signalled he was prepared to resume attacks on Iran.
Brent traded below US$116 a barrel after surging by more than 6 per cent last week, while West Texas Intermediate was near US$102. Trump told Fox News that it is “getting to be decision time” on whether he will make a deal with Teheran or “finish it off”.
In recent days, Washington has ordered a wider evacuation of diplomatic personnel from sites across the Middle East.
Iran is bracing for a fresh bombing campaign around the US Nov 3 midterm elections, and is preparing to retaliate, including against Israel and the United Arab Emirates, according to a person familiar with Teheran’s thinking.
There were further strikes at the weekend between Iranian-backed Houthis in Yemen and Saudi Arabia, ratcheting up risks to energy flows.
The rebel group claimed that they targeted King Khalid International Airport in Riyadh in response to Saturday’s Saudi attacks in Sanaa and other areas in Yemen.
Brent has surged about 90 per cent in 2026 so far and refined-product prices have risen even more, boosting inflation.
The conflict, approaching the start of its ninth month, now risks re-escalating, with traders on alert for a potential resumption of hostilities after Israeli elections this week, followed by the US midterms.
A flareup would pose fresh risks to crude shipments through the Strait of Hormuz, just as exports have recovered to near pre-war levels despite Iranian attacks against vessels.
The narrow waterway links the Persian Gulf to global markets, and has been at the centre of the conflict. BLOOMBERG
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