Brent Crude Surges Past $105 on Middle East Escalation and Supply Disruptions

Brent crude jumped over 4% on Thursday, reaching a two-week high amid escalating Middle East tensions and hurricane-related shutdowns of US oil and gas production.

Supply concerns intensified after the strongest attacks yet on vessels in the Gulf and Strait of Hormuz, even as reports indicated that 81% of oil flow through the strait had been restored to pre-war levels. Meanwhile, multiple US oil installations remained offline due to severe weather.

The conflict in Yemen continues to deepen, with Syria signaling potential support for its ally Saudi Arabia. Additional pressure came from signals that the US and Israel are preparing a possible renewed strike on Iran, pending final presidential approval.

Oil prices broke above $105 per barrel for the first time since September 25, retracing over 61.8% of the prior $109.77-to-$95.11 decline and clearing the October 1 recovery top of $103.95. Daily chart momentum improved as moving averages shifted into a full bullish configuration and the 14-period oscillator entered positive territory.

A sustained break above $103.95 would confirm the bullish signal, with near-term targets at $106.31 (Fibonacci 76.4%), while key resistance sits at $108.22 and the $110 zone, where multiple September attempts failed. Immediate support is watched at $103.37 and $102.44.

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