Brent crude hits $116, highest in 6 months on US-Iran war fears

Brent crude oil surged to $116.72 per barrel on Friday, its highest level in six months, amid fears that the US-Iran conflict could escalate after the US midterm elections. The December contract rose $3.55 on London's ICE Futures Exchange, briefly touching $117 intraday, marking a 20% increase since early September and over 90% gain this year. US West Texas Intermediate also climbed $3.80 to $103.27 per barrel. The price spike follows a New York Times report that the US and Israel have prepared plans to strike Iran again after the elections. Iran has warned of a strong response and intensified attacks on tankers in the Strait of Hormuz, while Yemen's Houthi rebels have expanded strikes on Saudi Arabia. Global oil inventories are also declining, with the EIA estimating daily reductions of 1.9 million barrels in Q3 and 700,000 barrels in Q4.