Oil prices surged on Thursday after The Wall Street Journal, citing U.S. officials, reported that Washington is sending a third aircraft carrier strike group to the Middle East. Brent crude, the global benchmark, rose 4.4% to settle at $102.31 per barrel, while U.S. West Texas Intermediate futures gained 2.7% to close at $92.87 a barrel.
According to the report, the USS Theodore Roosevelt is expected to arrive in the region by the end of November. Officials also said Marine Corps ships and up to 10,000 additional troops are being deployed. The USS George H.W. Bush and the USS George Washington are already stationed in the Middle East.
CNBC said the move was read by the market as a sign that the U.S. could be preparing to intensify its war against Iran. Last week, The Wall Street Journal reported that President Donald Trump told aides he expects to resume bombing Iran after the U.S. midterm elections in November.
Scott Modell, CEO of Rapidan Energy and a former CIA officer, told CNBC that “the direction of travel is toward escalation.” In his view, traders are increasingly pricing in geopolitical risk rather than looking only at current supply flows.
Crude shipments from the Middle East have largely recovered to prewar levels, but the rebound remains fragile. Maritime security agencies said at least three tankers were attacked this week while transiting the Hormuz Strait. The market is also facing pressure from Russia’s diesel export ban after Ukrainian strikes on refineries, as well as Chinese refiners canceling some planned October exports of gasoline and jet fuel.
