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Oil prices rise more than 3% on concerns over Middle East tensions and Hurricane Milton
Oil prices rose more than 3% during trading on Thursday, October 10, supported by increased demand for fuel before Hurricane Milton swept through Florida, fears of potential supply disruptions from the Middle East, and indications of a potential increase in energy demand in the United States and China.
Brent crude futures rose $2.82, or 3.68%, to settle at $79.40 a barrel.
West Texas Intermediate crude futures rose $2.61, or 3.56%, to settle at $75.85 a barrel, according to Reuters.
This came after Hurricane Milton swept through Florida, causing gasoline stocks to run out at about 25% of the state's gas stations, and power outages to more than 3.4 million homes and businesses, according to Reuters.
Oil prices rose in October after Iran fired more than 180 missiles at Israel on the first day of the month, raising expectations of an Israeli response by targeting Iranian oil facilities. But prices fell again before stabilizing relatively, with no Israeli response yet.
This does not mean that the chances of an Israeli response to Iran are weak, as investors remain cautious, after Israeli Defense Minister Yoav Galant vowed a response that would be “deadly, targeted and surprising.”
US President Joe Biden held a phone call on Wednesday with Israeli Prime Minister Benjamin Netanyahu about Israel’s plans regarding Iran.
In the US, market confidence rose that the Federal Reserve will cut interest rates at its November meeting, after new economic data revealed a rise in weekly unemployment claims and an increase in the annual inflation rate, which was higher than expected, but the lowest rate since February 2021.
