Fears of escalation after US elections push oil to highs, Brent already at $117.5

Oil prices are rising today as traders prepare for a possible escalation of the conflict in the Middle East after the US congressional elections. Shortly before 17:00 CET, North Sea Brent crude was up 2.3 percent, trading near $117.50 a barrel. US light crude West Texas Intermediate (WTI) was up around two percent, rising above $104 a barrel.

Brent has gained around 13 percent since the start of October. "With the congressional elections approaching, fear is growing on the oil market," said Ole Hansen, an analyst at Saxo Bank. Some investors and analysts expect the United States to resume strikes on Iran after the elections, he said, Reuters reports.

The conflict in the Middle East began in late February with US-Israeli strikes on Iran. The war has brought shipping through the Strait of Hormuz to a halt; before then, around a fifth of the world's oil supplies passed through it.

A tanker was hit today in the Strait of Hormuz by explosive devices attached to it by a small boat, according to the UK maritime security agency UKMTO. It is not yet clear who was behind the attack, Reuters reports.

"Ongoing attacks in the Strait of Hormuz, coupled with doubts about a diplomatic resolution to the conflict, are keeping oil prices high, as an escalation of the conflict is expected in the coming weeks," said Saul Kavonic, an analyst at MST Marquee.

Oil prices in dollars per barrel (about 159 litres)