Oil prices climbed on Oct. 1 after reports said the United States is sending a third aircraft carrier to the Middle East.
According to CNBC, citing The Wall Street Journal, Brent crude rose 4.4% to settle at $102.31 a barrel. U.S. West Texas Intermediate crude futures gained 2.7% and settled at $92.87 a barrel.
USS Theodore Roosevelt expected by late November
CNBC, citing The Wall Street Journal, said U.S. officials expect the USS Theodore Roosevelt carrier strike group to reach the Middle East by late November. The carrier left San Diego on Sunday on a scheduled departure.
Officials also said Marine Corps vessels and as many as 10,000 additional troops are being deployed and are expected to be in place by late November as well.
Two carriers are currently operating in the region: the USS George H.W. Bush and the USS George Washington. A separate report from The National said the Theodore Roosevelt will replace the George Washington after arriving. The George Washington has been stationed in the area since August, when it took over from the USS Abraham Lincoln.
CNBC says deployment may point to a broader escalation
CNBC said the deployment may indicate the United States is preparing to intensify military action against Iran.
The Wall Street Journal reported last week that U.S. officials said Trump had told aides he expected to resume bombing Iran after the U.S. midterm elections in November. The ABMedia report also noted that Chain News had previously reported Trump rejected an Iranian proposal to reopen the Strait of Hormuz.
Scott Modell, a former CIA official and chief executive of Rapidan Energy, said on CNBC on Monday: 「I think the president will escalate after the midterms, and we have also been hearing that the Iranians will escalate before the midterms. The overall direction is toward escalation.」
At least three tankers attacked in the Strait of Hormuz this week
CNBC said crude flows from the Middle East have in fact returned to pre-war levels, but that recovery remains fragile. Citing data from a maritime security group monitoring the region, the report said at least three tankers were attacked this week while passing through the Strait of Hormuz, and fuel exports from the Middle East are still constrained.
The report also said Ukraine attacked Russian refineries, forcing Moscow to ban diesel exports. It added that Iran and its ally, Yemen's Houthi movement, also attacked refineries in the Middle East, putting global fuel supply under heavy strain.