Oil prices soared more than five percent on Thursday following reports that the United States could launch fresh attacks on Iran before next month's midterm elections, risking further supply disruptions.
International benchmark Brent North Sea crude rose to $105.46 per barrel and the main US contract, West Texas Intermediate, was up to $92.82 per barrel.
The report by The Atlantic that the White House asked the Pentagon to draw up military options for fresh strikes against Iran before next month's US midterm elections broke a widespread market assumption that President Donald Trump would avoid escalating the multi-month conflict ahead of the November 3 vote.
The sudden price spike reversed a mid-week drop where crude briefly slipped below the $100 mark due to G7 commitments to tap strategic reserves and signs of recovering export flows.
Traders are now re-evaluating the stability of global energy supplies as several key risk factors converge, including Persian Gulf bottlenecks and escalating Houthi attacks.
Compounding Middle East supply anxieties, Yemen's Iran-backed Houthi rebels launched ballistic missiles at King Khalid International Airport in Riyadh on Thursday.
The group issued an explicit warning to international airlines and oil facility staff in Saudi Arabia to evacuate energy infrastructure.
Adding to supply worries were signs of weather disruptions, as Hurricane Isaias saw offshore energy companies shut down production and evacuate personnel across the Gulf of Mexico. -- AFP