United States Moves to Deploy Third Carrier Strike Group to Middle East, Sending Global Oil Prices Higher; Brent Crude Tops $100

[Financial News]  Global oil prices surged after reports emerged that the United States would send a third carrier strike group to the Middle East.
On the 1st (local time), Brent crude futures, the global oil benchmark, settled at $102.31 a barrel on the New York Mercantile Exchange (NYMEX), up 4.4% from the previous session. West Texas Intermediate crude oil (WTI) futures also rose 2.7% to $92.87 a barrel.
The Wall Street Journal reported, citing United States officials, that United States Marine Corps vessels and additional forces numbering up to 10,000 are being deployed to the Middle East. The forces are expected to arrive there by the end of November. The USS Theodore Roosevelt, which departed a United States base in San Diego on the 27th, is being added to the deployment. The USS George H.W. Bush and USS George Washington are currently deployed in the Middle East.
The military buildup is being interpreted as a signal that the United States is escalating its war against Iran. Last week, United States officials said they expected President Donald Trump to resume bombing Iran after the United States midterm elections in November. Scott Modell, CEO of Rapidan Energy Group, analyzed the situation, saying, "The president is expected to intensify his military response after the midterm elections" and, "The overall situation is moving toward an escalation of the conflict."
Crude oil supplies from Middle Eastern oil-producing countries have recovered to prewar levels, but geopolitical instability continues. Maritime security agencies said at least three tankers attempting to pass through the Strait of Hormuz had been attacked this week, underscoring ongoing logistical disruptions.
Meanwhile, global fuel supply chains are being disrupted as Iran and Houthi rebels have attacked oil refineries in the Middle East, following Russia's ban on diesel exports after Ukraine attacked Russian refineries. Diesel prices in the United States averaged $6.40 a gallon last month, an all-time high, and have remained near that peak. Some foreign media outlets reported that Chinese refiners had canceled some scheduled October exports of gasoline and jet fuel to secure supplies for the domestic market.


[email protected] Yoon Jae-jun Reporter