Oil extends rally above $97 on intensifying US-Iran war

Crude oil rose above $97 a barrel on Thursday, hitting its highest level since May as the US-Iran conflict intensified and stoked concern about further Middle East supply disruptions. Iran said it was prepared for a more intense conflict, pledging to resist the US naval blockade and warning it would step up attacks if US forces kept striking Iranian territory. President Donald Trump said the conflict would not end until after the November midterm elections and said a meaningful drop in gasoline prices was unlikely before then, pointing to limited room for near-term de-escalation.

Fighting has escalated over the past week after about a month of relative calm, with both sides increasing attacks. The conflict widened after Iran-backed Houthi militants hit several energy facilities in Saudi Arabia, prompting a temporary suspension of some operations.