Oil prices climbed sharply on Thursday, with Brent crude rising more than 4%, after reports of a potential US military buildup in the Middle East added to concerns over the security of regional energy supplies.
December Brent crude futures settled at $102.31 a barrel, gaining $4.28, or 4.37%. US West Texas Intermediate crude ended at $92.87 a barrel, up $2.45, or 2.71%.
The rally followed a report that the United States is preparing to send additional military personnel and naval assets to the region. The deployment could involve Marine Corps ships and as many as 10,000 additional troops, with the forces expected to arrive by the end of November.
The USS Theodore Roosevelt reportedly departed San Diego on Sunday for a scheduled deployment. Two other US aircraft carriers, the USS George H.W. Bush and USS George Washington, are already operating in the Middle East.
The reported buildup has heightened speculation that Washington could take further military action against Iran. US officials have previously indicated that President Donald Trump has discussed the possibility of renewed strikes after the November midterm elections.
Energy markets are particularly sensitive to developments around the Middle East because the region remains central to global crude and refined-fuel supplies. Prices have continued to rise despite oil flows from the region recovering toward levels seen before the latest conflict.
That recovery, however, remains vulnerable. At least three tankers have reportedly come under attack this week while passing through the Strait of Hormuz, one of the world’s most important oil shipping routes.
Iran and its Houthi allies have also targeted refineries in the region, adding another layer of risk for fuel markets.
Supply pressures are emerging elsewhere as well. Ukrainian attacks on Russian refineries have contributed to Moscow imposing a ban on diesel exports, while Chinese refiners have canceled some gasoline and jet-fuel shipments scheduled for October.
With disruptions emerging across several major producing and refining centers, traders are increasingly focused on whether the latest military developments could translate into a wider squeeze on global fuel supplies.
