Oil retreats from five-month peak as Hormuz tensions keep markets cautious
Oil prices slipped from recent multi-month highs as traders booked gains, while continued attacks in the Strait of Hormuz sustain supply-risk concerns.
Oil markets eased on Monday, with Brent crude slipping to $108.52 a barrel and U.S. West Texas Intermediate to $101.28, after peaking at five-month highs the previous week. Traders cited profit-taking as the primary driver, but analysts warned that persistent strikes on ships crossing the Strait of Hormuz and reduced Gulf flows keep supply concerns alive. A recent incident saw a tanker explode after striking a naval mine in the southern Hormuz corridor, and overall commercial vessel incidents rose to at least ten last week, cutting average Gulf exports to roughly 8.5 million barrels per day from more than 20 million the week before.
Egypt announced readiness to back Saudi Arabia against Houthi attacks, potentially widening the regional conflict. Meanwhile, the United States signed an executive order waiving certain sanctions and tariffs on Russian diesel, a policy shift viewed as an effort to stabilize oil prices ahead of the November 3 midterm elections.
Why it matters
Oil price swings affect global economies, and Hormuz disruptions could tighten supply and raise costs worldwide.
How this story developed
- Sep 24 Gulf oil exporters use alternate routes to sustain supply amid Iran conflict
- Oct 7 The White House has asked the Pentagon to outline possible new attacks on Iran before the November midterms, aiming to show progress in the conflict and lower gas prices.
- Oct 8 A tanker north of Qatar was hit by multiple projectiles, causing casualties.
- Oct 8 Trump publicly ruled out an Iranian strike before the midterm elections.
- Oct 9 Oil prices rose sharply as uncertainty over the U.S. stance on Iran grew.
- Oct 10 According to the Revolutionary Guard, the vessel hit a mine and burst into flames while transiting the Hormuz Strait. The flag of the ship has not been identified. The incident follows a series of recent attacks on vessels in the Persian Gulf, including Iran's claim that it shot at a tanker using an "illegal channel." The flare-up has contributed to a rise in global oil prices and renewed worries about the security of one of the world’s key oil transit routes.
- Oct 11 Trump has kept large‑scale military pressure on Iran on hold for the next 24 days until the midterm elections conclude.
- Oct 13 Trump’s Strait of Hormuz announcement and dismissal of Iran’s UN proposal occurred alongside a Brent price jump and the departure of the final U.S. soldiers from Iraq.
- Oct 14 Iran’s security chief publicly named the US‑UAE night‑shuttle as a specific target.
- Oct 14 Iran announced a revised method for targeting vessels in the Strait of Hormuz.
- Oct 14 The International Energy Agency says worldwide oil consumption will fall this year, and diesel supplies will remain constrained through 2027.
- Oct 14 Trump warned that Washington will soon decide its next move against Iran.
- Oct 15 The IEA sent a letter urging member countries to accelerate diesel stock releases ahead of its Oct. 15 board meeting.
- Oct 17 A supertanker hit a sea mine in the strait, triggering a fire.
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