Oil prices climbed about 2% today on a spike in US fuel use before Hurricane Milton barrelled across Florida, Middle East supply risks and signs that demand for energy could grow in the US and China.
Brent futures rose $1.62, or 2.1%, to $78.20 a barrel by 1526 GMT, while US West Texas Intermediate (WTI) crude rose $1.48, or 2.0%, to $74.72.
In the US, the world's largest oil producer and consumer, Hurricane Milton barrelled across Florida, where about a quarter of fuel stations sold out of gasoline, knocking out power to more than 3.4 million homes and businesses.
"Closures of several product terminals, delayed tanker truck deliveries and disrupted pipeline movement will likely be affecting supplies well into next week given broad based power outages," analysts at energy advisory firm Ritterbusch and Associates said in a note.
"This vast uncertainty across Florida petroleum infrastructure generally has supported gasoline values," Ritterbusch said. US gasoline futures RBc1 were leading the energy complex higher, trading up about 2.5% on Thursday.
Crude benchmarks spiked earlier this month after Iran launched more than 180 missiles against Israel on October 1, raising the prospect of retaliation against Iranian oil facilities. With Israel yet to respond, crude benchmarks have eased once more and remained relatively flat through the week.
But investors remained wary, given Israeli Defence Minister Yoav Gallant promised that any strike against Iran would be "lethal, precise and surprising".
US President Joe Biden spoke to Israeli Prime Minister Benjamin Netanyahu about Israel's plans concerning Iran, though ANZ analysts said there is growing concern that Israel's allies have little influence on its strategy.
Israeli forces, meanwhile, fired on two positions used by UN peacekeepers in southern Lebanon on Thursday and at another one on Wednesday, the UN force said, as Israel pressed its assault on Iran-backed Hezbollah and told Lebanese civilians not to return to homes in the south.
Gulf states are lobbying Washington to stop Israel from attacking Iran's oil sites because they are concerned their own oil facilities could come under fire from Tehran's allies if the conflict escalates, three Gulf sources told Reuters.
