Oil prices pushed sharply higher on 20 October 2026 as the CNBC reported that US West Texas Intermediate (WTI) crude futures (a key benchmark for American oil prices) jumped 5.23% to around US$109.08 per barrel, while the global benchmark Brent crude rose 1.65% to US$111.36 per barrel, its highest price since May, as investors kept a close watch on growing unrest in the Middle East.
WTI front-month contracts, which were due to expire on 20 October, have risen for nine consecutive sessions, putting them on track for a monthly gain of almost 20%. Brent futures quoted were for December delivery.
Attacks on shipping escalate in the Strait of Hormuz
The rise in prices comes as vessels transiting the Strait of Hormuz have faced a sharp increase in attacks. Ship tracker Kpler recorded fire on at least 18 ships during the fortnight to 20 October, with assaults on commercial shipping in the waterway intensifying.
Iran’s Revolutionary Guard Corps stated on 20 October that two oil tankers it described as “non-compliant” had been set ablaze in the strait after striking mines laid by its naval unit, according to Iranian state-affiliated news agency Tasnim. Iran’s Foreign Ministry spokesperson Esmaeil Baqaei also said at a news conference that Tehran would respond to any American strike “in equal measure, if not more forcefully,” Tasnim reported.
US President Donald Trump has stated that American forces would not attack Iran before the midterm elections on 3 November.
What is driving the WTI price jump?
Tamas Varga, analyst at PVM Oil Associates, told CNBC that the sharp rise at the front end of the WTI market ahead of contract expiry reflects tightness in global crude supply. He attributed this to three factors.
‘It is a reflection of falling export volumes from the Middle East as tanker attacks and Houthi strikes on Saudi oil infrastructure intensify,’ he said. He also pointed to a US decision to exempt Russian shadow fleet vessels from sanctions, arguing this would push freight rates ‘possibly lower,’ which had previously discouraged buyers from turning to US-sourced crude. ‘With this hurdle removed, at least temporary, U.S. crude oil grades are back in play as replacements of Mideast crude oil,’ he added. His third point was that US commercial oil stocks are ‘expected to have declined last week.’
Varga delivered his assessment in an email to CNBC on 20 October 2026.
