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Oil passes $90 as tanker attacks halt Hormuz shipping

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Oil prices have risen above $90 a barrel for the first time in more than a month after the United States launched a new wave of strikes against Iran and the American military death toll from the conflict increased.

Brent crude, the international benchmark, rose by 2.5% to $90.30 a barrel in early Asian trading on Monday. Prices have advanced by more than 23% this month, putting oil on track for its largest monthly increase since March, when hostilities were at their peak.

Oil last traded above $90 a barrel on 11 June.

The surge in prices follows an escalation in retaliatory strikes between the US and Iran. Washington confirmed over the weekend that it had suffered further military casualties, whilst Tehran targeted critical energy and water infrastructure in the region. At least three US service members have been killed in attacks since Friday, with officials stating that remains recovered in Jordan may belong to a fourth soldier.

In an assessment published on Monday, commodity analysts at ANZ noted that tanker traffic through the Strait of Hormuz had “collapsed” due to heightened security anxieties. The analysts added that rising production in the US has been insufficient to offset shipping disruptions in the Gulf, whilst Washington’s blockade of Iranian ports has further disrupted global energy supplies.

The US has launched strikes against Iran for a ninth consecutive night. Washington stated that the operations targeted various military facilities, coastal surveillance stations, and communications networks in an effort to degrade Tehran’s capability to attack commercial vessels in the Strait of Hormuz.

Iran’s Islamic Revolutionary Guard Corps (IRGC) reported late on Sunday that two oil tankers attempting to navigate the “unsafe” southern route of the strait had been “blown up and halted.” In a statement published on social media, the Revolutionary Guards emphasised that the US had “provoked” the attack.

“This is our territory,” the statement said, declaring that there was no “legal” basis for the intervention of the US military, which had travelled thousands of kilometres. The IRGC added that no oil, natural gas, or fertiliser would be permitted to pass through the strait as long as hostile US activities in the region continued.

In a separate statement, the Revolutionary Guards announced that they had targeted US military C-17 transport aircraft and P-8 reconnaissance aircraft at Aqaba Airport, acting on “intelligence” provided by Jordanian citizens.

British maritime authorities reported on Monday that a fire had broken out on board a vessel north of Oman. The United Kingdom Maritime Trade Operations (UKMTO) stated that “the cause of the fire cannot be confirmed at this stage,” advising vessels in the area to navigate with caution.

Markets outside of the oil sector remained relatively stable. The dollar was flat against a basket of currencies of its major trading partners, whilst the yield on the 10-year US Treasury note was unchanged at 4.55%. S&P 500 and Stoxx Europe 600 futures also traded flat, while Asian equity markets presented a mixed picture.

US officials maintained that the primary objective of the current military strikes is to secure the safe passage of energy shipments through the Strait of Hormuz.

Middle East

US warns Gulf allies of possible Iran strikes after midterms

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The US administration has notified several Gulf allies that it could launch a short but intensive military campaign against Iran immediately following the congressional midterm elections on 3 November. Washington urged regional states to prepare for this contingency.

According to a Wall Street Journal report citing sources with direct knowledge of the discussions, the warning did not specify which countries were briefed. Meanwhile, military activity on the ground has accelerated alongside these disclosures.

The US military has deployed a Patriot air defence battery from Texas to the Middle East, while beginning to pull its personnel back from exposed bases within range of Iranian ballistic missiles and drones to more secure positions. These moves reinforce indications that the US and Israel are preparing for a direct, wide-scale confrontation with Tehran.

The White House declined to comment on sensitive military plans whose existence has not been officially confirmed. An official statement emphasized, however, that President Donald Trump keeps all options on the table to prevent Iran from acquiring a nuclear weapon.

The New York Times reported last week that US and Israeli armed forces have stepped up joint military drills based on a short but intensive operational scenario. Potential targets identified by the newspaper include Iran’s nuclear facilities, critical energy infrastructure, and production centres for missiles and armed unmanned aerial vehicles.

The same report noted that while seen as an unlikely outcome, Trump could approve the operation before the end of October, though he might also opt against authorizing any military action. In recent months, Trump has repeatedly suspended decisions to re-enter active hostilities at the last moment.

The current active conflict between the two nations was triggered on 28 February by a joint US-Israeli strike on Iranian targets. Trump explained the primary rationale for the operation as ensuring that Tehran can under no circumstances attain a nuclear weapon.

These military actions follow the 12-day war fought in June 2025. During that air campaign, Washington directly targeted and struck Iran’s primary nuclear installations at Fordow, Natanz, and Isfahan.

International Atomic Energy Agency (IAEA) Director General Rafael Grossi outlined the latest situation on the ground during an address to the UN Security Council. Grossi stated that the agency has found no evidence indicating that Tehran is repairing or rebuilding from scratch the nuclear infrastructure damaged in the 2025 and 2026 strikes.

Criticizing the continued exclusion of monitors, Grossi urged Iran to grant international inspectors immediate access to all its nuclear sites, including damaged locations. Since the US bombardment in June 2025, the IAEA has been unable to independently verify the current status of Tehran’s stockpile of highly enriched uranium.

According to official agency records, Iran held 440.9 kilograms of uranium enriched to 60% purity prior to the June 2025 war. In nuclear physics, 60% enrichment is technically regarded as exceptionally close to the roughly 90% threshold required for weapons grade.

Following the bombings, Tehran barred international inspectors from entering the struck facilities. Because of this restriction, the regulatory body cannot ascertain how much of this critical stockpile remains intact or where it is currently stored.

Mounting military costs fuel domestic political pressure

President Trump maintains that the June 2025 air strikes demolished Iran’s nuclear capabilities. Nevertheless, the prolonged military operations have destabilized economic conditions, and soaring domestic fuel prices in particular are placing the governing Republican Party under severe political strain ahead of the midterms.

Trump has pushed back against criticism over rising energy costs, arguing that absorbing higher prices at the pump is necessary to prevent Tehran from acquiring nuclear arms.

Pentagon budget records reviewed by Reuters indicate that total US military spending on the Iran conflict has surpassed $47 billion. This figure stands 25% above official estimates released by defence officials in July.

The largest portion of total expenditures, $29 billion, was allocated to replenishing depleted munitions stocks, while $6 billion went toward replacing worn military hardware. It remains unclear whether repair bills for US bases damaged by retaliatory Iranian missile and kamikaze drone strikes are included in this official $47 billion sum.

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Middle East

US military operations against Iran reach $47 billion

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The total cost of US military operations against Iran has reached $47 billion.

According to a report by the American newspaper The Hill, citing an assessment by US Central Command (CENTCOM), the operation’s budget grew by more than $3 billion in the past month alone.

A detailed breakdown of the spending appears in a document prepared by the command. The largest share of the budget is accounted for by munitions shipments, totalling $29 billion.

Additional expenses arising directly from conducting the military operation stand at approximately $12 billion, whilst replacing lost military equipment and gear requires $6.1 billion.

Funding allocated to support military personnel deployed to the region, air transport, communications, and transport operations within the operational theatre is calculated at $7.6 billion.

Moreover, this overall total does not include the expenditure required to repair and rebuild US military bases in the Middle East.

According to information reported by The Hill, US President Donald Trump is weighing the possibility of launching fresh strikes against Iran following the country’s midterm elections.

Trump had previously described the military operation against Iran as one of the best decisions of his presidency.

Congress steps in as budget deficit deepens

The bill for the operation climbed swiftly in a short period. In a statement on 22 July, US Secretary of War Pete Hegseth announced that the cost of the Iran campaign had reached $37.5 billion.

Hegseth noted that the figure covered both expenses already incurred and projected spending through the end of the fiscal year on 30 September.

A day before Hegseth’s statement, The Washington Post reported that the Pentagon was facing a severe cash crunch due to the war with Iran.

The newspaper reported that the White House had requested an emergency supplemental appropriation of $67 billion from Congress to cover military expenses, warning that the military would be forced to cut other spending items if the request were rejected.

Following these developments, the House of Representatives approved a $1.15 trillion defence budget.

The relevant resolution includes allocating $73 billion in additional funding to the Pentagon and intelligence agencies, primarily to cover the costs of the war being waged with Iran.

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Middle East

Over 3,000 Palestinians displaced as Israel’s Hebron siege hits day 5

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The Israeli army’s siege of the city of Hebron in the occupied West Bank has entered its fifth day. More than 3,000 Palestinians have been forced to flee their homes as raids, house demolitions, and forced evictions continue across the city.

According to data shared by Hebron Municipality on 26 October, the number of displaced people has reached 3,189. More than 200 of them are infants.

Municipal authorities announced that roughly half of the total displaced population consists of children and youths under the age of 18.

Palestinian officials in the besieged city declared a state of emergency and established an urgent crisis desk.

Rami Khamis, a member of the crisis desk, highlighted civic solidarity in remarks to Al Jazeera, saying local residents and benefactors who refused to let their fellow citizens stay in temporary shelters opened their homes to displaced families.

A Palestinian forced to abandon his home in haste recounted his ordeal to Al Jazeera on 26 October.

Explaining that they fled with only the clothes on their backs, the resident said their savings, household goods, and official documents were left behind. After placing his family in a relatively safe place, he attempted to return to salvage their belongings, but could not reach the house because the area was no longer safe.

The siege began immediately after an attack on 23 October in which two Israeli soldiers were killed. The two Palestinians who carried out the assault were killed at the scene by Israeli forces.

Citing this incident, the Israeli army blockaded the city and launched wide-ranging operations. The British newspaper The Guardian described the measures carried out in Hebron as “collective punishment”.

Hamas official Mahmoud Mardawi also condemned both the siege in Hebron and the military incursions spreading across the occupied West Bank in a statement on 26 October.

Emphasising that these steps constitute collective punishment, Mardawi warned that escalating tensions on the ground could lead to grave consequences.

Mardawi further argued that Prime Minister Benjamin Netanyahu and his government are using these attacks for propaganda and electoral calculations, stating that military pressure will not break Palestinian resilience and that calculations regarding annexation and mass expulsion will fail to achieve their goal.

Operation rift in Israeli leadership

As the blockade entered its fifth day, a divergence of opinion emerged between Israel’s military brass and the government.

According to a report in the Yedioth Ahronoth newspaper, Chief of Staff Eyal Zamir and Prime Minister Benjamin Netanyahu clashed over the future of the operation.

Zamir argued that the military campaign on the ground had delivered whatever benefit it could provide and that it was now time to bring it to an end.

Military officials said tangible gains achieved throughout the operation remained limited, indicating that whether to sustain the current push required reassessment.

Indeed, the newspaper reported that Israeli forces managed to seize only a limited number of weapons in the city, failing to uncover any unusual arsenals or major arms caches.

However, Chief of Staff Zamir’s proposal to end the operation was rejected. Prime Minister Netanyahu and the Defence Minister dismissed the recommendation and decided to continue the offensive.

At least 70 Palestinians have been detained in Hebron since the siege and operations began. The Israeli army is also continuing extensive demolition activities targeting civilian homes across the city.

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