Oil slips from six-month high as traders weigh Iran risk

Brent crude briefly rose above $117 a barrel on Friday, October 23, before settling at $116.72, up 3.14%. That was its highest close since April 29. Traders reacted to a new wave of Houthi attacks on Saudi Arabia and to fears that the US could resume strikes on Iran. The benchmark gained more than 6% over the week, and West Texas Intermediate closed above $103.sharecafe.com.au+2

Higher oil prices weighed on markets heading into a busy week. Futures for Australia's S&P/ASX 200 pointed to a 43-point, or 0.5%, drop at Monday's open. That followed a weak Friday on Wall Street, where the Nasdaq 100 ended its worst two-week stretch since April last year.sg.finance.yahoo.com

Attacks on Saudi energy sites

Houthi militants claimed attacks on the Red Sea oil port of Yanbu, on Aramco facilities and on Dammam airport. Saudi state media said a drone strike on the Shaybah oilfield on October 21 killed two people. Saudi Aramco told staff at its Dhahran headquarters to move to secure locations and work remotely, and the US State Department ordered non-essential personnel to leave the kingdom.tbsnews.net+1

Tehran also said it would attack oil facilities, undersea cables and data centres in the Gulf if the US and Israel launched a new offensive. Susannah Streeter of Wealth Club said fears were rising that American and Israeli forces could strike Iran's energy infrastructure after the US elections on November 3.aol.co.uk

Prices ease as markets reopen

Oil slipped from its six-month high in early Asian trading on Monday, October 26, with Brent below $116. This came even as President Donald Trump signaled he was prepared to resume attacks on Iran. Over the weekend, Saudi Arabia struck Sanaa, and the Houthis said they targeted King Khalid International Airport in Riyadh in response. Exports through the Strait of Hormuz, however, have recovered to near prewar levels.sg.finance.yahoo.com

A crowded week for markets

Investors also face Australia's third-quarter inflation report on Wednesday. Bond traders are pricing in a better than 60% chance that the Reserve Bank of Australia will raise its cash rate to 4.85% in early November. The Federal Reserve is expected to hold rates steady this week. Earnings are due from Alphabet ↘ 1.08%, Microsoft ↗ 0.66%, Amazon Amazon.com, Inc. ↘ 0.95% and Intel ↗ 1.72%.sharecafe.com.au

"Fears of supply disruptions drove the advance," said Adam Turnquist, chief cross-asset strategist at LPL Financial ↘ 1.02%.asianlite.com