Oil prices climb above $105 as Trump considers renewed strikes on Iran

Oil prices surged more than five per cent on Thursday after reports that the United States could launch fresh attacks on Iran before next month's midterm elections, raising fears of further disruptions to global oil supplies.

International benchmark Brent crude rose to $105.46 per barrel, while US West Texas Intermediate (WTI) climbed to $92.82 per barrel.

The rise came after The Atlantic reported that the White House had asked the Pentagon to prepare options for strikes on sites in Iran ahead of the November 3 vote.

With Donald Trump's Republicans facing the possibility of losing both houses of Congress, any escalation in the US-Iran conflict could put further pressure on the president. Americans are already dealing with record-high diesel prices.

The conflict has also affected shipping through the Strait of Hormuz, a key route for global oil supplies. Smaller-scale Iranian attacks on commercial shipping have reduced traffic through the waterway to a fraction of prewar levels.

According to MarineTraffic data, daily traffic through the Strait of Hormuz averaged fewer than 23 ships between September 28 and October 4. Before the war, hundreds of ships passed through the waterway each day carrying crude oil and related products to global markets.

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Qatar says US-Iran talks still ongoing

Despite growing differences between Washington and Tehran, Qatar said on Tuesday that indirect talks between the United States and Iran were still continuing.

Qatari Foreign Ministry official Ibrahim Al-Hashmi said messages were being exchanged between the two sides through Qatar and its regional partners. He said the discussions were taking into account the concerns of all parties involved.

"I can confirm that the talks are continuing and the exchange of messages between different parties is continuing via Qatar and its regional partners," Al-Hashmi said.

Earlier this month, Trump rejected a proposal to reopen the Strait of Hormuz within a week and resume nuclear talks in return for lifting the US naval blockade of Iranian ports.

G7 agrees to release 100 million barrels

The oil market remains under pressure despite efforts to increase fuel supplies.

On Friday, G7 countries agreed to coordinate the release of 100 million barrels of oil and fuel stocks through the International Energy Agency. The plan includes a substantial release of diesel within the first 20 days and will continue for four months.

US President Donald Trump also said European countries had agreed to release a "massive amount" of diesel from their reserves, with the process beginning immediately.

Despite the move, oil prices remain high, adding to inflation concerns in the United States and Europe.