FX.co ★ Crude Oil Soars Near 5%

Crude oil climbed above $92.60 a barrel on Thursday, its highest level in nearly a month, as fears of supply disruptions intensified. Reports indicated that the White House had asked the Pentagon to prepare strike options against Iran that could be carried out before the midterm elections, while US President Donald Trump said on Wednesday that he no longer sought a deal with Tehran. At the same time, attacks on shipping in the Gulf and the Strait of Hormuz have escalated, with Houthi forces increasing strikes against Saudi Arabia.

Prices were further supported by production outages in the Gulf of Mexico, where companies including Chevron and Shell have begun cutting output and evacuating staff from offshore platforms in anticipation of Tropical Storm Isaias. As of Wednesday, roughly 25.1% of current US Gulf of Mexico oil production and 16.4% of natural gas output had been shut in due to the storm, according to the Bureau of Ocean Energy Management.