WTI nears $100 as Asian stocks and precious metals fall
Oil rose early Thursday after artificial-intelligence jitters eased and investors returned their attention to the Middle East. Front-month WTI crude oil futures rose 0.9% to $98.02 a barrel, while front-month Brent crude oil futures gained 1.1% to $109.98.
The Wall Street Journal reported, citing officials familiar with the planning, that the U.S. military had prepared a range of options to strike Iran. Two aircraft carrier strike groups were in the Middle East, with a third on the way from the Pacific. President Trump has said the U.S. would not attack Iran before the Nov. 3 midterm elections.
Saudi authorities blamed Iran-backed Houthi militants for an attack on a civilian airport that resulted in casualties. The U.S. said it ordered nonemergency government employees and their family members to leave Saudi Arabia in response to continuing threats from the Yemen-based group.
Separately, Saudi Arabia’s energy ministry said on X that the country intercepted a drone that attempted to target Saudi Aramco’s Shaybah oil field on Wednesday.
The continuing Middle East disruption to oil supply continued to weigh on global inventories, according to The Wall Street Journal. Data released Wednesday by the U.S. Energy Information Administration showed U.S. crude stockpiles falling by a sharper-than-expected 3.1 million barrels last week.
Rania Gule, senior market analyst at XS.com, said oil prices would likely remain volatile, with sharp reactions to political developments, as WTI hovered near what she described as the psychologically significant $100 threshold.
Asian equities extended their losses in early trading as investors assessed the Middle East developments and key technology earnings. The report said risk appetite remained low and that investors likely took profit after a brief rebound in some markets Wednesday. South Korea’s Kospi fell 2.1%, Japan’s Nikkei Stock Average fell 1.0%, China’s Shanghai Composite Index fell 0.9%, and Hong Kong’s Hang Seng Index fell 2.1%.
Meta’s results were also in focus. The company reported record third-quarter revenue and beat market expectations, but its plans to finance artificial-intelligence investments drew scrutiny. Pepperstone head of research Chris Weston said in a note, “Investors will reward growth and monetization, yet they’re also becoming more sensitive to how the next leg of investment is financed and what it means for existing shareholders.”
Precious metals also declined as higher oil prices fueled inflation concerns, according to the report. Spot gold fell 0.6% to $4,114.73 a troy ounce, and spot silver fell 1.1% to $57.31 a troy ounce.
MSI previously reported that the U.S. had launched fresh attacks on Iran near the Strait of Hormuz, which the American military described as additional self-defense strikes. The current oil-price reaction came as officials reported preparations for possible new attacks, while the timing and scale of any renewed U.S. action remained unspecified.