Oil surged over 2% to six-month highs as Hormuz limpet mine attack seals 15% monthly gain

Global crude oil futures surged over 2% on Friday to close at their highest levels since late April after a tanker was struck by limpet mines in the Strait of Hormuz and traders braced for post-midterm US strikes on Iran.

Crude benchmarks rallied aggressively on Friday to lock in steep monthly advances. Expiring December Brent jumped $2.76, or 2.40%, to settle at $117.64 a barrel, while active January Brent settled at $113.43. WTI climbed $2.12, or 2.08%, to finish at $104.12, leaving the transatlantic spread at $13.52 and sealing October gains of 13.6% for Brent and 15.2% for WTI.

A dangerous escalation in maritime sabotage propelled the buying. British maritime security confirmed a commercial tanker in the Strait of Hormuz was struck by explosive limpet mines deployed from a small boat, marking the waterway's first successful limpet attack since February. Supply fears intensified after Houthis targeted Saudi refineries at Ras Tanura and Rabigh, alongside an Aramco processing facility in Abqaiq.

Geopolitical anxiety deepened as traders increasingly priced in the risk of direct US military strikes against Iranian infrastructure following Tuesday's midterms. Diplomatic channels remained stalled as Tehran rejected preconditions following outreach from US Vice President JD Vance. Physical balances tightened further after an armed militia shut a Libyan pipeline valve, halting 15,000 bpd from the Hamada field to Zawiya.