Oil Prices Rise After Iran States Enriched Material Will Stay in Country

Oil prices rose about 1% on Wednesday as supply worries returned following comments from an Iranian security official that the country will keep its enriched nuclear material inside its borders. Brent futures settled $1.27 higher at $92.76 a barrel, while US West Texas Intermediate crude gained 49 cents to $86.53 a barrel. Prices recovered from two-month lows hit in the previous session when they initially fell by more than $3 a barrel after US officials played down the need for more military strikes. Market support also came from continuing shipping disruptions in the Strait of Hormuz, where 37 ships were attacked in October according to data from the Washington Institute for Near East Policy, marking the highest monthly total since the war began in February. Meanwhile, US crude stocks rose by 9 million barrels in the latest week based on figures from the American Petroleum Institute. On the supply side, Kpler data shows that Middle East crude and condensate outages dropped to about 3.8 million barrels per day, with Saudi and Iraqi output returning to pre-war levels.

Context

Global oil markets are heavily sensitive to geopolitical tensions in the Middle East, particularly around critical shipping routes like the Strait of Hormuz. When conflicts disrupt tanker traffic or nuclear negotiations stall, supply fears routinely push crude prices higher even when regional production output recovers.