Oil Heads for a Fourth Straight Monthly Gain as Gulf Tensions Mount

Crude oil is on track for its fourth consecutive monthly gain. Brent settled at $114.88 on Thursday and traded near $116 on Friday morning, while WTI settled at $102, putting it on course for its first monthly close above $100 since April. Brent is up nearly 14% in October and WTI about 15%.

The Houthis claimed attacks on Saudi facilities including refineries at Ras Tanura and Rabigh and an Aramco site at Abqaiq, which Saudi Arabia has not confirmed. Iran's Revolutionary Guards said three tankers struck sea mines near the Strait of Hormuz. Diplomacy remains uncertain: a senior Iranian official called a new Qatari-mediated draft deal unacceptable, though U.S. Vice President JD Vance has sent a letter seeking to revive talks.

U.S. crude inventories fell 1.9 million barrels in the week to October 23, a fourth straight weekly decline. Higher fuel prices are a tailwind for energy holdings such as Chevron and BP, and a cost headwind for airlines like Delta and American.