Oil prices hit $105 as US Iran strike reports rattle global markets

International oil benchmarks surged on Friday, 9 October, as geopolitical tensions in the Middle East and reports of potential US military action against Iran triggered supply fears, sending global equity markets lower. Brent North Sea crude rallied to a session high of $105.88 per barrel before settling at $104.28, representing a 58% increase over the last 12 months. The price spike followed a report from The Atlantic stating the White House had requested the Pentagon to draft options for strikes against Iranian sites. However, prices retreated from their daily peaks after US President Donald Trump announced on his Truth Social platform that no military action would occur before the midterm elections on 3 November. The US West Texas Intermediate (WTI) contract for November delivery closed 3.6% higher at $91.49 per barrel. Geopolitical risks and supply disruptions Market volatility remains high due to dual threats to energy infrastructure. Andy Lipow of Lipow Oil Associates noted that increased Iranian attacks on maritime traffic through the Strait of Hormuz are compounding regional jitters. Simultaneously, Yemen's Houthi rebels targeted Riyadh airport with missiles and warned oil facility staff in Saudi Arabia to evacuate, further threatening regional output. In the Gulf of Mexico, Hurricane Isaias has forced the suspension of a significant volume of oil production, adding domestic supply pressure to the US market. These factors have pushed bond yields to 20-year highs as…