Houthi Strikes and Hormuz Tanker Attack Put Oil on Course for Fourth Straight Monthly Gain

Crude oil prices are heading for their fourth consecutive monthly gain at the end of October 2026, driven by escalating Middle East conflict. Houthi forces stepped up attacks on Saudi Arabia while a tanker in the Strait of Hormuz was struck, sharpening supply-disruption fears across global energy markets. Brent crude was trading near $115.74 to $116 a barrel on Friday, on pace to close the month roughly 13-14% higher, while WTI was near $102.72, pointing to a monthly gain of around 14-15%, the steepest since July.

Key price levels watched by traders include resistance at $114.37 for Brent and $103.94 for WTI. Natural gas futures slipped toward $2.80, bucking the strength seen in crude markets.

Outside the Middle East, US-based drilling contractor Nabors Industries flagged improving conditions in Venezuela, saying it sees "huge potential" to grow its rig count there as customers begin considering new long-term drilling programs. Nabors also said its Lower 48 US rig count is expected to extend gains into the fourth quarter, a sign of broadening upstream activity.

Friday's session includes several scheduled catalysts for markets: the Baker Hughes total rig count report, the US Chicago PMI reading at 9:45 a.m. Eastern, Fed speakers Mary Daly at noon and Alberto Musalem at 12:30 p.m., and earnings before the open from major energy names including ExxonMobil, Chevron and BP, alongside healthcare and defense companies.