Brent closes up 3.88% at $98.29 after sharp Wednesday decline
Key Facts
Brent crude settled Thursday, November 5, up 3.88% at $98.29 a barrel, according to data carried by Reuters via Euronext. The rise followed reports of maritime incidents in the Strait of Hormuz, as traders reassessed shipping and supply risks. Iranian television said two oil tankers and a tug caught fire after striking mines in the strait on Thursday. The Associated Press was unable to independently verify the claim. The gain put the price move in the context of a session marked by sharp volatility during the week.
Brent fell more than 8% on Wednesday, bringing both crude benchmarks to their lowest settlement levels since August 31, according to Reuters. The benchmark then reversed part of that decline in Thursday's session, adding $3.67 a barrel. Analysts at Gelber and Associates said the rebound reflected caution about assuming a swift return of oil flows. They added that diplomatic progress would need to translate into reliable shipments and deliveries before markets priced in a return to normal supply. That view highlights the link between price movements and actual shipping developments, alongside the political track.
The United Kingdom Maritime Trade Operations agency, UKMTO, said at least five vessels had reported incidents from Sunday through Thursday. It added that 35 vessels experienced incidents in October, which the agency said was the highest number in any month of the war. The figures come as concerns about the safety of navigation through the waterway recur. AP reported the Iranian television account of the ships catching fire, while emphasizing that it had not independently verified the claim. Details of the incident therefore remained attributed to the Iranian side, while the market assessment reflected renewed shipping risks.
Disruptions in the strait matter to markets given its scale in global energy trade. The International Energy Agency said an average of 20 million barrels a day of crude oil and petroleum products moved through Hormuz in 2025, equivalent to about 25% of global seaborne oil trade. The agency pointed to the limited options available to bypass the strait. Oil flows through it rose in September by 3.7 million barrels a day to 10.9 million barrels a day, supported by ship-to-ship transfers in the Gulf of Oman. Crude exports from Gulf producers, led by Saudi Arabia, also increased by 4.4 million barrels a day to 13.9 million barrels a day in the same month.
On the diplomatic track, Iranian Foreign Minister Abbas Araghchi spoke Thursday with his Saudi counterpart, Faisal bin Farhan, about efforts to improve regional security and stability. He also spoke with Qatar's foreign minister about coordinating efforts to reduce tensions. Qatar's foreign ministry said Doha continued to facilitate the exchange of proposals between Washington and Tehran. The ministry said a Qatari delegation visited Tehran on November 2 and held a meeting lasting about three hours to discuss proposals under consideration. Tehran had closed the strait after the U.S. and Israeli attack on Iran in February, according to AP.