Rising Middle East risk is keeping oil prices elevated and pressing the Indian
rupee. In Friday morning trade USD/INR rose to about 95.25, near Thursday’s
two‑week high of 95.38. TD Securities said a flurry of reports about a possible
pre-midterm deal has weighed on crude, but it expects that dynamic to persist
through the US midterms and judges Iran unlikely to agree to a deal in the tense
run-up to the election. The bank added fundamentals remain tight: tanker attacks
and Houthi pressure have apparently reduced Middle East oil shipments, at least
temporarily. TD said as long as ongoing attacks sustain a risk premium, energy
prices should find firm support at current elevated levels.