Developments in the Strait of Hormuz and Libya drive up oil prices

The barrel price of Brent crude increased by 1.1 percent to reach $114.40, driven by escalating tensions regarding ship transits in the Strait of Hormuz and the closure of a pipeline valve in Libya.

Having climbed up to $113.50 yesterday, the December futures barrel price of Brent crude finished the day at $113.17, and as of 09.13 today, it reached $114.40 with a 1.1 percent increase. At the same time, the barrel price of West Texas Intermediate crude stood at $100.78. Shipment risks in the Strait of Hormuz and concerns over production disruptions in Libya played a role in the price increase.

The Islamic Revolutionary Guard Corps Navy warned that if the U.S. encourages ships to pass through routes described as illegal in the Strait of Hormuz, conflicts could spread to U.S. bases in the region. It was previously announced that 4 ships were hit in the northern Persian Gulf, while 3 ships hit naval mines west of the Strait of Hormuz, causing fires.

The National Oil Corporation (NOC) of Libya reported that unidentified individuals closed the crude oil pipeline valve near the Zawiya Oil Refinery. It was noted that keeping the valve shut, which provides oil shipments from the Hamada and Al-Tahara fields, could lead to a drop in production, heightening global supply concerns.

U.S. President Donald Trump argued that Iran was trying to drive up oil prices ahead of the November 3 congressional midterm elections. Meanwhile, Trump's invocation of the Defense Production Act to boost the country's energy capacity brought supply security debates to the markets, with experts stating that these steps could support supply in the long term but have limited the current rise. For Brent crude, $118.20 is being monitored as the resistance level and $107.13 as the support level.