Oil prices surged on Thursday, jumping over $2 a barrel in post-settlement trading after reports suggested that Iran might launch an attack on Israel from Iraqi territory in the coming days. Brent crude futures rose $2.10, or 2.91%, to $74.26, while WTI crude climbed $2.15, or 3.13%, to $70.76. Reports indicate the attack, expected to involve drones and missiles, could be Iran’s attempt to avoid direct confrontation by using pro-Iran militias in Iraq.
Meanwhile, oil markets were also bolstered by signs that OPEC+ may delay a planned production increase, with a final decision expected at its December 1 meeting. In addition, manufacturing growth in China, the world’s largest oil importer, showed improvement for the first time in six months, hinting that recent stimulus efforts are gaining traction. “International events have converged… that could see oil markets in for a bumpy ride in early November,” noted Rystad Energy analyst Sahdev, pointing to the U.S. election, Chinese demand concerns, and Middle Eastern tensions.