Oil nears $100 as US-Iran military escalation fears grow

Brent crude rose 1.12% to $99.41 per barrel on Friday, while West Texas Intermediate gained $0.56, or 0.62%, to $91.08 by 10:40 am PST, Mettis Global reported. Traders were weighing the risk of renewed US-Iran military conflict after the US midterm elections against prospects for a diplomatic agreement.

Rapidan Energy Group founder Bob McNally told CNBC he saw an 80% chance of hostilities restarting and said both benchmarks could move above $100. Hopes for negotiations offered some counterbalance after Iran reportedly sent a nuclear proposal to Washington via Qatar. Supply concerns also rose after Iran reported three more tanker attacks in the Strait of Hormuz on Thursday, while UKMTO data indicated vessel attacks remained close to record levels. The dispute over Iran’s nuclear capabilities remains unresolved, according to the report.