FX.co ★ Brent Rises Amid Heightened Middle East Uncertainty

Brent crude rose above $115 per barrel on Wednesday, edging back toward four-year highs after reports that the United States had urged several Persian Gulf states to prepare for a potential new military campaign against Iran following the midterm elections. Investors were also closely monitoring Israel’s election results, given their potential impact on the trajectory of the Middle East conflict. Exit polls indicated a tight race between Prime Minister Benjamin Netanyahu and opposition leader Gadi Eisenkot, with vote counting still underway. Throughout the campaign, Eisenkot positioned himself as a more moderate alternative to Netanyahu, insisting that Iran’s nuclear program must be contained—if necessary by military means—while arguing that regime change in Tehran is “not an achievable goal.” At the same time, US crude inventories declined by roughly 2 million barrels in the week ending October 23, signaling a tightening in oil supply.